Chinese polysilicon producers sign pact to end below-cost sales

Eight major Chinese polysilicon producers, representing over 90% of the country's effective production capacity, have signed a joint initiative to end loss-making sales and stabilize the solar supply chain. The agreement, signed in Shanghai, commits companies including Tongwei, GCL Technology, Daqo New Energy, Xinte Energy, Asia Silicon, Xinjiang East Hope New Energy, Qinghai Lihao Clean Energy, and Xinjiang Goens Energy Technology to avoid selling products below their calculated full costs.

To ensure compliance, the signatories will follow the ‘General Rules for the Cost Accounting Model of the Photovoltaic Industry’ developed by the China Photovoltaic Industry Association (CPIA) under the guidance of the State Administration for Market Regulation (SAMR) and the Ministry of Industry and Information Technology (MIIT). The initiative also includes commitments to reduce outdated production capacity that fails to meet efficiency and technology requirements, aligning with new mandatory energy-consumption standards set to take effect in 2027.

Participating firms are expected to conduct internal price audits and report suspected below-cost selling to the CPIA and market regulators. This move follows increased regulatory pressure from Beijing to shift the sector away from destructive price competition toward higher quality and technological advancement.