China’s SAMR is encouraging PV companies to shift competition from low prices to product quality and compliant business practices
It has asked solar PV firms to strengthen cost accounting, conduct self-inspections, and improve price compliance systems
Firms that continue to disrupt market order despite guidance could face enforcement action under the law, it cautioned
China's State Administration for Market Regulation (SAMR) has issued price compliance guidance to the solar PV industry as part of efforts to address excessive price competition and support the sector's long-term development.
It issued the guidance during a meeting on July 31, 2026, in Yancheng, Jiangsu Province, with 27 companies and representatives from the China Photovoltaic Industry Association (CPIA) in attendance.
According to SAMR, the initiative is intended to implement the decisions of the CPC Central Committee and the State Council to curb ‘involutionary’ competition. It encouraged companies to move from competing on price to competing on quality and promote the high-quality development of the PV industry.
It instructed the companies to strengthen cost accounting, establish and improve price compliance systems, and carry out comprehensive self-inspections and corrective actions. Industry associations were asked to guide PV enterprises to avoid engaging in ‘vicious’ and ‘predatory’ low-price competition.
Companies should instead adopt compliant business practices and help maintain orderly market pricing.
The regulator said leading PV manufacturers should take the lead in complying with pricing laws and regulations and promote orderly market competition.
It would continue strengthening price supervision while improving guidance on enterprise cost accounting to support orderly industry development. It added that companies that attract widespread criticism, seriously disrupt market order, or fail to correct their practices after regulatory reminders and interviews will face legal action.
Previously in January 2026, SAMR warned the Chinese polysilicon industry over its joint actions on pricing, production and sales, fearing it could create monopolies (see China Warns Polysilicon Firms Over Monopoly Risks).
SAMR’s focus on the subject follows the Chinese government’s efforts to curb disorderly competition in the solar industry triggered by massive overcapacity, which has been squeezing margins for PV manufacturers (see China Steps Up Efforts To Curb Price Wars In Solar Industry).
China is also encouraging the industry to improve manufacturing efficiency while phasing out outdated production capacity. Updated national energy-efficiency standards taking effect from January 2027 will tighten energy consumption limits for key solar manufacturing processes. (see China Tightens Energy Standards For Solar Manufacturing).
