Bloomberg reports that Chinese solar exporters have agreed to curb aggressive price competition in global markets, aiming to foster “healthy competition” amidst a market glut and price wars.
A group of 22 companies, including industry leaders Trina Solar Co., LONGi Green Energy Technology Co., and Tongwei Co., announced the creation of a committee to address unfair competition and promote orderly exports.
China’s dominant solar industry faces mounting challenges due to overproduction, leading to an oversupply of equipment in both domestic and international markets, including the EU, India, Pakistan, and Brazil.
This has heightened concerns over potential protectionist measures. The surplus has caused significant financial losses for some firms, layoffs, and even bankruptcies.
Industry leaders have called for collective action and government intervention to stabilise the sector and enhance its global reputation.
Adding to the strain, a reduction in a key export levy rebate will take effect on December 1. According to the Chinese finance ministry, the rebate, which has supported the overseas sales of wafers, cells, and modules, will decrease from 13% to 9%.
“The new policy aims to encourage the export of high-value-added products from China and reduce the risk of anti-subsidy or anti-dumping investigations,” said Daiwa analyst Dennis Ip.
The newly formed “self-discipline” committee convened on November 22 focused on safeguarding industry interests rather than enforcing restrictive measures.
