The Chinese Ministry of Industry and Information Technology has issued a statement to control production capacity. Polycrystalline silicon prices have rebounded. Photovoltaic panel companies initiate cost declaration mechanism.
On July 3rd, the Chinese Ministry of Industry and Information Technology held the 15th Manufacturing Enterprise Symposium, pointing out the follow-up policy direction for the current overcapacity and low price competition in the photovoltaic industry1. The meeting emphasized controlling excess production capacity, regulating low price competition, and improving industry order. According to Dongfang Wealth Software, after the policy news was announced, the photovoltaic sector rose comprehensively in the A-share market on July 8th.
As of the midday market close, several companies including Tongwei Co., Sungrow Power Supply, Xinte Energy, Laplace, and Shouhang High-Tech saw gains of over 10%. Key players across the entire photovoltaic (PV) industry chain—such as JA Solar, JinkoSolar, TCL Zhonghuan, Trina Solar, LONGi Green Energy, Aiko Solar, and GCL Technology—also posted strong increases. This surge spans multiple segments of the PV supply chain, including polysilicon, wafers, solar cells, modules, and inverters2.
Polycrystalline silicon prices rise.
Since July 7th, there have been signs of an increase in polysilicon prices. On July 8th, several top silicon material suppliers suspended external quotations, and the market generally expects that there is still room for price increases in the future. Industry analysis points out that the measures taken by silicon material enterprises are to actively adjust their output pace in response to the Chinese government’s policy signals, reduce disorderly expansion and low-priced shipments3.
Photovoltaic panel companies begin to report their true costs to regulatory authorities
According to multiple sources, it has been confirmed that some photovoltaic panel manufacturers have recently started reporting their actual production costs directly to government regulatory authorities, rather than relying solely on feedback from industry associations. This indicates that the government is promoting the establishment of transparent and fair pricing mechanisms in the industry to alleviate the previous vicious price war and profit squeeze.
This policy is a swift response to the Central Financial and Economic Affairs Commission meeting, marking a new stage of high-quality development for China’s photovoltaic industry.
This Ministry of Industry and Information Technology (MIIT) meeting closely followed the sixth meeting of the Central Financial and Economic Affairs Commission on July 1, which was presided over by president Xi Jinping. The meeting clearly emphasized the need to regulate disorderly low-price competition in accordance with laws and regulations, improve product quality, and promote the orderly exit of outdated production capacity. This has set the tone for the photovoltaic (PV) industry to shift toward high-quality development in the medium to long term.
This policy-driven industry rebalancing is expected to become a pivotal turning point for China’s PV industry as it transitions from rapid expansion to high-quality growth.
Informantion source:
1.Ministry of Industry and Information Technology of the People’s Republic of China, wap.miit.gov.cn/xwfb/bldhd/art/2025/art_fff973df74d6409690b9600ac69110a8.html
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