China’s Ministry of Industry and Information Technology (MIIT) held a high-level meeting with solar industry leaders last week to discuss stabilising the sector and implementing recent directives from the Central Financial and Economic Affairs Commission.
The government aims to address what it calls “disorderly” competition and guide the industry toward more sustainable growth.
Chaired by MIIT Minister Li Lecheng, the meeting brought together 14 major companies, including Longi, Trina, JA Solar, Tongwei, and Sungrow, alongside the China Photovoltaic Industry Association (CPIA).
It followed a July 1 economic policy session where officials called for tackling “irrational” pricing, phasing out outdated capacity, and improving industrial quality.
The MIIT said the industry must “firmly implement the central government’s decisions, resolutely crack down on low-price disorderly competition, and promote the orderly exit of outdated capacity.”
Li also urged companies to maintain “self-discipline” and emphasised the importance of innovation and long-term competitiveness.
The meeting took place amid growing public and official concern over excessive competition, often referred to in China as “involution.”
In the days leading up to it, the state-run People’s Daily published a front-page editorial criticising price wars and calling for structural reform.
Some parts of the supply chain have already begun adjusting. Ten glass producers, including Xinyi Solar and Flat Glass, plan to cut output by 30% in July.
In the polysilicon segment, companies like GCL Technology and Daqo New Energy have indicated that mergers and acquisitions are under consideration.
Despite investor optimism – solar stocks rose sharply after the meeting—analysts remain cautious. Overcapacity persists across the value chain, and structural changes may take time to materialise.
