Chinese Regulator to Meet Solar Firms Over 'Irrational Competition'

China's market regulator plans to meet with solar industry representatives this Friday to address what authorities have termed "irrational competition" plaguing the sector. The meeting aims to provide guidance on pricing compliance and the implementation of industry-wide cost-accounting standards, according to a report from local media outlet Cailianshe.

A Sector Under Pressure

The intervention comes as China's solar industry grapples with a protracted and damaging price war. The core issue is a significant excess capacity, which has led to intense, cutthroat competition and eroded profitability across the supply chain.

Many of the industry's leading manufacturers have been operating at a loss for years. According to recent results guidance, some top producers still anticipate their first-half losses to increase, potentially reaching billions of yuan, underscoring the severe financial strain on the sector.

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Broader Crackdown on Price Wars

This regulatory focus is part of a wider government effort to curb disorderly competition in key industries. Authorities are renewing a crackdown on what is described as "involution-style" competition, a term for a hyper-competitive race to the bottom that yields little collective gain.

This phenomenon has triggered brutal price wars in other critical sectors, including electric vehicles, lithium batteries, and cement. An attempt by China's industry ministry in July of the previous year to rein in the solar price war had limited impact, as the fundamental issue of overcapacity persisted.