China regulator to meet solar industry on curbing competition, local media reports

China's market regulator will meet with solar industry representatives on Friday to provide guidance on pricing compliance and the implementation of industry cost-accounting standards, local media outlet Cailianshe reported on Wednesday.

The meeting is aimed at curbing what authorities describe as irrational competition in the sector, the report said, which has been hit by a protracted price war driven by excess capacity.

China's market regulator is renewing a crackdown on what it calls "involution-style", or cutthroat, competition. Seen as a sign of economic malaise, involution has led to brutal price wars that have hit profit margins across industries from electric vehicles to lithium batteries, cement and food delivery.

China's industry ministry pledged in July a year ago to curb disorderly price competition in the solar sector, in which many of the leading companies have been operating at a loss for years, following calls from top economic policymakers to crack down on price wars.

But the push did little to cut into the overcapacity that is weighing on solar prices. According to results guidance earlier in July, some top manufacturers still expect to see their first-half losses increase to billions of yuan.

Reuters

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