China calls on its PV industry to deepen industrial management, develop ‘strategic alliances’

The Chinese government has urged its PV industry to have reserves of key products, but not to hoard them. Image: Tongwei

The Chinese government has issued a notice to its PV industry that calls for the optimisation of the sector and further buildout of its infrastructure while warning against hoarding products and the establishment of solar monopolies.

The country’s Ministry of Industry today (24 August) released the policy document that called for an “optimisation of the industrial layout” of China’s PV sector by planning and managing the development of the PV industry while promoting China’s internal solar market.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

It said there was an “urgent need to deepen industry management” following supply and demand imbalances, price fluctuations and supply chain hoarding.

As a result, the Ministry called on Chinese solar stakeholders to “apply a new generation of information technology, build a big supply chain data platform for silicon materials, silicon wafers, batteries, components […] and key supporting materials and equipment”.

While doing this, however, companies are encouraged to “reserve materials such as polysilicon and batteries” but “hoarding is strictly prohibited”. Panic buying and hoarding last year was a key factor in driving up the price of polysilicon and modules as companies scrambled to lock in supply to meet customer demand.

Now, the Chinese government is calling on its solar industry to form long-term “strategic alliances” and cooperate on the production and supply of key silicon materials and products as it conducts “joint research to promote industrial quality improvement, cost reductions and efficiency enhancement.”

Moreover, it said the industry should “adhere to the overall planning of epidemic prevention and control”. China, unlike most of the rest of the world, is pursuing a zero-COVID strategy that has already seen industrial centres shutdown following small outbreaks and the key export hub of Shanghai closed for several weeks in April.

And the call for greater integration and infrastructure development has been made even more pertinent this week as China’s PV industry has been hit by power rationing following extreme heat in some provinces. This has forced some major PV supply to cut their production output in key regions.  

21 March 2024
This special webinar will look at one of the most important changes impacting PV manufacturing today; how to establish and sustain new facilities around the world. For more than two decades, policy-makers have grappled with the challenges of nurturing domestic manufacturing sectors. Many countries have tried to create domestic sectors: Japan, Taiwan, South Korea, India, Europe and the U.S. But success stories have been rare. Mistakes seem to be repeated. And all the while, Chinese dominance of the industry has only increased. However, in the past 2-3 years, new drivers have emerged that suggest the dream of a global PV manufacturing ecosystem could be a reality. Join us as we shed light on this.
26 November 2024
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 28, 2024
Seattle, USA
Solar Media Events, Industry Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA