Local media report that China regulator will meet with solar industry to curb competition

Cailianshe, a local media outlet, reported Wednesday that China's market regulator would meet with solar industry representatives on Friday to discuss pricing compliance and the implementation of industry cost accounting standards.

The report stated that the meeting was to curb what authorities described as irrational competitiveness in the sector. This sector has been 'hit by a long-running price war caused by excess capacity.

China's market regulator has renewed its?crisis against what it calls "involution style" or cutthroat competition. Involution, seen as a sign?of economic malaise, has led to 'brutal price battles' that have?hit profit margins in industries such as electric vehicles, lithium batteries, food delivery, and cement.

China's Industry Ministry pledged a year ago in July to stop the price wars in the solar industry, where many leading companies had been operating at a loss. This was in response to a call from top economic policymakers.

The push did little to reduce the overcapacity which is pushing down solar prices. According to the?results guideline earlier in July?some of the top manufacturers?still expect their first-half loss to increase to billions yuan. Reporting by Colleen Waye; editing by Christian Schmollinger

(source: Reuters)