Canadian Solar and LONGi chiefs sound the alarm as China’s PV industry enters ‘dark forest’ of price wars and patent battles

Beyond the price disputes, patent lawsuits among several leading Chinese PV companies have escalated, with multiple cases being heard in courts nationwide.

Against this backdrop, Shawn Qu, chairman of Canadian Solar, and Li Zhenguo, founder and president of LONGi Green Energy, sat down together to share their perspectives on industry pricing, competition, and patent disputes—a rare public dialogue that has drawn significant attention.

“I don’t think the current short-term price rebound is a sign of overall industry recovery. I’m not that optimistic,” Li Zhenguo said at the 2025 PV/Storage Forum, held in Suzhou, eastern China. “The long-term prospects for PV remain bright, but in the short term, I’m not overly optimistic. Recent price increases in Europe and China are more of a correction.”

He added: “​Why do I call it a correction? Because companies have shifted from merely losing cash to a state of severe bleeding. Last year, the PV industry suffered severe supply-demand imbalances. Without addressing overcapacity on the supply side, sustained imbalances will make it impossible to truly resolve market challenges, including price stabilisation.”

Li Zhenguo was one of the earliest voices warning of the industry’s downturn. During the SNEC PV Exhibition in May 2023, Li Zhenguo warned that the industry was already facing a mismatch between supply and demand. He predicted that in the next two to three years, many PV manufacturers might be forced to exit the market. Subsequently, LONGi Green adopted strategic contraction measures to weather the “industry winter”.

Now, as prices show slight rebounds and optimism grows, Li, as the leader of a top PV company, urges caution:​

“First, the recent price recovery has been minimal in magnitude. Second, policy shifts may trigger a short-term installation rush over the next two to three months. However, the impact of this rush will be limited for the industry, as existing capacity may struggle to reactivate production in time. To conclude, I believe more companies will need to exit the market in this round of industry consolidation.”

Competition has intensified beyond initial expectations, escalating from initial capacity expansion, technological diversification and price wars to high-end technological patent battles.

Regarding this escalation, Shawn Qu remarked, ​”The recent patent disputes sadden me. China’s PV sector has entered a ‘dark forest’ era, where patents are weaponised in internal strife. In this ‘forest,’ participants move stealthily, striking preemptively at any perceived threat.”

He emphasized: ​”While we respect patents—whether purchased, acquired, or original—using them for internal rivalry harms China’s indigenous innovation. We must avoid malicious competition disguised as patent protection.”

Li Zhenguo echoed this sentiment: “The ‘dark forest’ metaphor reflects the brutal reality of this adjustment cycle. Many firms are in crisis, and we must guard against malicious competition driven by survival pressures.”

In response, Canadian Solar and LONGi Green, together with Runergy, Huasun Solar, Das-solar and other industry players, jointly issued an initiative titled “Advancing Independent Innovation and Original Technology in the PV-Storage Sector”.

The initiative states: “We must recognise that true competitiveness stems from independent innovation and original technology. Only through relentless R&D can we remain invincible in fierce market competition and promote sustainable growth for the PV-storage industry.”