Key facts
- China's market regulator plans to meet with solar industry representatives.
- The meeting is scheduled for Friday.
- Guidance will be provided on pricing compliance and cost-accounting standards.
- The objective is to curb "irrational competition" and price wars in the solar sector.
- Excess capacity has led to significant price declines and impacted profitability.
- Some leading manufacturers anticipate increased losses in the first half of the year.
China's market regulator is set to convene a meeting with solar industry representatives on Friday to address concerns over pricing compliance and the implementation of industry cost-accounting standards, according to local media outlet Cailianshe.
The gathering is intended to curb what authorities have identified as "irrational competition" within the sector. This move comes amid a prolonged price war fueled by substantial excess capacity, which has squeezed profit margins across various industries, including electric vehicles, lithium batteries, cement, and food delivery.
The concept of "involution-style" or cutthroat competition is seen by some as an indicator of economic malaise. China's industry ministry had previously pledged to curb disorderly price competition in the solar sector, a call echoed by top economic policymakers. However, these efforts have not significantly alleviated the overcapacity issue that continues to depress solar prices.