China’s State Administration for Market Regulation (SAMR) issued compliance guidance in Hefei, Anhui Province, to regulate the order of price competition in the solar photovoltaic (PV) industry.

SAMR briefed participants on price-related violations and risk issues in the PV sector, noting that current problems, such as low-quality competition and homogeneous, repetitive capacity expansion, have led to widespread profitability issues.

These practices have distorted market resource allocation, dampened incentives for investment in technological innovation and product upgrades.

SAMR emphasized that the entire industry must fully recognize the importance of rectifying involution-style competition in the PV sector. Solar companies must conduct production and business operations in accordance with laws and regulations, and are strictly prohibited from engaging in price collusion, price fraud, and other improper pricing practices.

They must also firmly eliminate unfair competition practices such as false advertising and commercial bribery. Power generators must take their responsibilities seriously by adhering to the principle of high-quality, fair-priced PV project tenders and by strengthening product quality requirements.

Industry associations are urged to perform their self-regulatory functions effectively, guide enterprises to achieve win-win outcomes through innovation, quality improvement, and service upgrades, and jointly promote a healthy, orderly, and sustainable industry ecosystem.

SAMR stated that it will intensify product quality supervision, strengthen enforcement of prices and anti-unfair competition, severely crack down on illegal and non-compliant activities, safeguard fair market competition, and promote the standardized, healthy, and sustainable development of the photovoltaic industry.

Officials from SAMR, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Commerce, along with representatives from market regulation departments in Jiangsu, Zhejiang, Anhui, and Qinghai provinces, as well as power generators, solar companies, and industry associations, attended the meeting.

China recently filed a complaint with the World Trade Organization (WTO) against India’s solar photovoltaic subsidies, alleging that they provide an unfair competitive advantage to Indian companies and harm Chinese interests.

China and India have on many occasions taken their trade disputes concerning clean energy to the WTO. Back in 2023, China raised a ‘Specific Trade Concern’ against India’s regulation that permits the deployment of only domestically manufactured solar modules for all projects across the country under the Approved List of Models and Manufacturers mandate.