Leading Chinese polysilicon producers have jointly agreed to stop below-cost selling through a binding self-regulation pact
The agreement covers pricing discipline, production planning, information sharing, and compliance monitoring
The initiative follows recent pricing compliance guidance issued by Chinese market regulators for the PV industry
Eight leading Chinese polysilicon manufacturers have signed a binding industry self-regulation agreement, or the Anti-Involution Initiative, to address excessive price competition and support healthier market conditions.
The signatories to the pact are GCL Technology, Tongwei, Daqo New Energy, Xinte Energy, East Hope New Energy, Lihao Clean Energy, Asia Silicon Industry (Qinghai), and Xinjiang Ge’ensi Energy. Several of them feature in Bernreuter Research’s top 10 polysilicon producers list for 2024, together accounting for 93.5% of global supply (see China Dominates 2024 Global Polysilicon Production).
The agreement was signed in Shanghai on August 6, 2026, after several rounds of negotiations, according to local media reports.
The participating companies said they share a common commitment to curb destructive competition and support the healthy development of China's PV industry through self-regulation.
They pledged to comply with China's Price Law, Anti-Unfair Competition Law, and Anti-Monopoly Law by ensuring that solar PV products are not sold below the cost calculated according to the General Rules for Cost Accounting Models in the Photovoltaic Industry. It was prepared by the China Photovoltaic Industry Association (CPIA) (see China Solar PV News Snippets).
These manufacturers have agreed to avoid selling polysilicon below cost and to strengthen industry discipline through coordinated actions. They will follow fair competition practices, improve production planning based on market demand, and avoid disorderly capacity expansion.
They will abide by the new energy consumption standards, phase out production capacity that does not meet national standards, and regulate expansion (see China Tightens Energy Standards For Solar Manufacturing).
According to the agreement, the participating companies pledged to maintain orderly market competition and support the industry's long-term, sustainable development. Violations of the pact would be subject to corresponding disciplinary measures under the agreed framework.
The move follows the recent guidance issued by China's State Administration for Market Regulation (SAMR), which called for greater compliance with pricing regulations across the solar PV industry (see Chinese Regulator Issues Guidance Against ‘Predatory’ PV Pricing).
Previously, nine polysilicon makers from China formed a new platform called Beijing Guanghe Qiancheng Technology to help tackle oversupply concerns and address inventory issues, among other priorities. This was followed by the country’s antitrust regulator, SAMR, raising concerns that this could create monopolies in the market (see China Warns Polysilicon Firms Over Monopoly Risks).
Meanwhile, the Chinese Ministry of Commerce (MOFCOM) released an official document titled China’s Position on the So-Called Excess Capacity Issue. It stressed that there is no necessary connection between industrial subsidies and excess capacity; rather, the rapid growth in China’s modern industries is driven by innovation.
“It has never been China’s intention to seek a trade surplus. China’s export growth is due to enhanced economies of scale and innovation capacity and the needs of countries for green transition and industrial development,” reads the position paper.
