Eight leading Chinese polysilicon producers have signed a joint initiative pledging unified action on standardised pricing, energy conservation, carbon reduction and outdated capacity phase-out.
The signatories—Tongwei, GCL Tech, Daqo, Xinte, Asia-Silicon, East Hope, Lihao, and Xinjiang Goens Energy Technology (formerly Xinjiang GCL New Energy Material Technology)—have agreed to curb below-cost sales and help stabilise China’s polysilicon sector through self-regulation of pricing.
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The pledge was agreed on the same day that US President Donald Trump announced details of new minimum import prices and additional tariffs on imported polysilicon and its derivatives under Section 232 of the 1962 Trade Expansion Act. While the two events appear coincidental, both are intended to bring some stability to the market.
China’s upstream PV polysilicon segment has long been plagued by below-cost selling and market distortion, compounded by the continued operation of high-energy-consuming old capacity. These practices have squeezed industry-wide margins and conflicted with national energy-saving and industrial upgrade goals. Against this dual pressure of domestic disorder and external trade friction, the eight firms reached a consensus through extensive consultations following negotiations in Shanghai last week.
For price compliance, the eight manufacturers commit to comprehensive price self-audits. Each company shall strictly adhere to the uniform cost accounting methodology and parameters specified in the group standard, General Rules for Cost Accounting Model of the Photovoltaic Industry (T/CPIA). Spearheaded by the China Photovoltaic Industry Association, the standard was formulated under the guidance of the State Administration for Market Regulation and the Ministry of Industry and Information Technology. In accordance with accounting standards, enterprises shall accurately compute cash cost, production cost and full cost for polysilicon production, covering both the trichlorosilane and silane fluidised bed processes. Effective immediately, all firms will conduct price reviews against the standard, verifying product-by-product and order-by-order whether actual selling prices meet full-cost thresholds.
All signatories affirm that future spot and tender offers for polysilicon shall not fall below the standardised full-cost benchmark. Any below-cost sales identified through self-audits will be promptly corrected. A mutual oversight mechanism will be established in which verified dumping by peers will be reported to industry associations and market regulators. All firms will accept routine regulatory inspections to eliminate price wars at the root.
On energy and capacity management, the initiative mandates full enforcement of the new compulsory national standard Norm of Energy Consumption Per Unit Product for Polycrystalline Silicon and Germanium, along with strict compliance with the Energy Conservation Law and the Cleaner Production Promotion Law.
Industry observers noted that the joint initiative covers the bulk of China’s operational polysilicon capacity, marking a key upstream response to national industrial policy. The unified cost-accounting framework and oversight mechanism will help restore rational pricing. Meanwhile, mandatory energy standards and the proactive phase-out of outdated capacity will further optimise supply structure, steering the sector away from homogeneous low-price rivalry toward competition grounded in technology, cost efficiency and green low-carbon performance.
You can read our full reporting on the US Section 232 polysilicon tariffs and their likely impact here.
