China's government has taken steps to address challenges in its electric vehicle (EV) and clean energy sectors amid concerns over irrational competition and price wars. The State Council pledged to regulate disorderly competition in the EV industry, focusing on price and quality oversight, with three government agencies assigned to monitor the sector. This move aims to curb deflationary pressures and stabilize the market. Concurrently, the China Chamber of Commerce engaged with the European Union's auto working group to discuss cooperation and expressed concerns about EU tariffs on Chinese EVs, arguing that such measures conflict with climate goals and create risks for foreign companies and investments in Europe. In the solar energy segment, major Chinese polysilicon producers, led by GCL Technology Holdings Ltd, plan to establish a $7 billion fund to buy and close at least one million metric tons of polysilicon production capacity—about one-third of total output. This initiative seeks to implement OPEC-style production limits to end price wars, reduce overcapacity, and restore profit margins in the polysilicon market. These coordinated efforts reflect Beijing's broader strategy to consolidate its clean energy industries and promote sustainable growth amid global trade tensions and market imbalances.
Exclusive: China polysilicon firms plan $7 bln fund to shut a third of industry capacity https://t.co/oR5ypxWYyg https://t.co/oR5ypxWYyg
Exclusive: Top China polysilicon firms plan to shut a third of production capacity, set OPEC-style output quotas, GCL says https://t.co/3RU6YBifsY https://t.co/3RU6YBifsY
Top China polysilicon firms plan to shut a third of production capacity, set OPEC-style output quotas - Reuters