China's Industry Ministry is set to take on the price war in the solar sector

In an effort to support the sector, China's Industry Ministry pledged to stop the disorderly low-priced competition in the photovoltaic market.

Overcapacity, coupled with a price war that has lasted for a long time, have caused many of China's top solar manufacturers to suffer losses.

Li Lecheng (China's Industry Ministry) said that in a meeting with representatives of solar companies and associations, the authorities should encourage companies to improve their quality and "promote an orderly withdrawal of outdated production capacities," according to the statement issued by the ministry.

Li announced that the ministry would increase guidance and governance in the industry. Li also called on industry associations to assume responsibility for improving self-discipline in the industry.

China's top leaders announced earlier this week that they would tighten regulations to combat aggressive price cuts by Chinese companies.

Separately, China’s top solar panel producer LONGi Green Energy Technology said to state-run media Securities Times that it would speed up the commercialisation high-efficiency products in order to overcome the low price dilemma.

The report also stated that the market share of "high-quality" capacity in the sector will grow faster after "outdated capacity" is phased out. Reporting by Yukun Zhi and Lewis Jackson, editing by Barbara Lewis

(source: Reuters)