China has called for “concerted efforts” to ease its solar power industry’s severe overcapacity crisis, as part of Beijing’s campaign to end a fierce price war.
The proposed measures include capacity control, standard guidance, price enforcement, mergers and acquisitions and intellectual property protection “to promote the high-quality development of the photovoltaic industry.”
China’s solar manufacturing capacity far outstrips global demand, triggering a domestic price war in recent years.
The country makes more than 80% of the world’s solar panel components, per the International Energy Agency, but its industry has been battling with an overcapacity problem because of intense domestic competition, which the Chinese government has called “involution.”
The push comes shortly after a meeting on Friday between agencies, including China’s Ministry of Industry and Information Technology and the National Development and Reform Commission, as well as the China Photovoltaic Industry Association and major state-owned power generators that buy solar, such as China Huaneng Group and China Datang Corp.
