Market conditions and not the Chinese government’s so-called ‘cull list’ will drive consolidation of the country’s solar sector, an industry analyst has said.

Last week the Ministry of Industry and Information Technology (MIIT) added another 52 companies to its initial group of 109 firms that have preferential access to state support.

The Chinese government has signalled that it would allow a degree of market consolidation to take place and issued criteria for manufacturers to meet in order to be eligible for state procurement and subsidy programmes.

One Chinese PV analyst, who preferred to remain anonymous, said the significance of the list should not be overplayed.

“This announcement was made by MIIT, which has small influence on the industry,” he said.

“There’s a series of standards to be entitled to [be placed on] the list, which are supposed to eliminate small and uncompetitive capacity in China, but the market is far more effective in selecting winners over losers,” he added.

Companies that make the cut are no more guaranteed success than those off it are guaranteed to fail and it was not intended to directly remove smaller firms from the sector.

“I’m sure their intentions have been and are still all good, but I would consider the list just a list of relatively large PV players in China. More companies will be added into this list in the future,” the observer added.