China’s Energy Chief Promises to Curb Solar Sector Price War
(Bloomberg) -- China’s energy regulator pledged to crack down on cut-throat competition and overcapacity in the solar manufacturing sector, as the industry struggles with a prolonged downturn.
The government will accelerate efforts to balance production and demand, with a special focus on improving quality across the solar supply chain, Wang Hongzhi, chief of the National Energy Administration, wrote in an article posted on the government agency’s Wechat account.
The industry “needs to accelerate the transformation from resource-oriented to profit-oriented, with cost control, operation efficiency, bidding strategy and revenue exploration becoming the key to stand out from competition,” Wang wrote.
His comments reinforce Beijing’s broader campaign against excess production across a range of industries. The so-called “anti-involution” push has already helped lift polysilicon prices and market sentiment toward solar stocks.
Prices for solar goods could face fresh pressure, however, as the country rolls out a new market-based pricing mechanism for renewable sources of power, Wang warned.
Wang suggested clean energy should be used beyond the power sector, including to produce green hydrogen, in order to mitigate waste.
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