China calls on its PV industry to deepen industrial management, develop 'strategic alliances'

Aug 25, 2022 10:00 AM ET
  • The Chinese government has actually released a notification to its PV industry that asks for the optimization of the market as well as further buildout of its framework while warning versus hoarding products as well as the establishment of solar monopolies.
China calls on its PV industry to deepen industrial management, develop 'strategic alliances'
Image: Tongwei

The country's Ministry of Industry today (24 August) released the policy record that called for an "optimization of the industrial design" of China's PV field by planning as well as handling the development of the PV industry while promoting China's internal solar market.

It said there was an "urgent demand to deepen industry management" complying with supply as well as demand imbalances, cost fluctuations and also supply chain hoarding.

Consequently, the Ministry gotten in touch with Chinese solar stakeholders to "use a new generation of information technology, construct a huge supply chain information platform for silicon products, silicon wafers, batteries, parts [...] and key supporting materials and equipment".

While doing this, nonetheless, companies are motivated to "book materials such as polysilicon as well as batteries" however "hoarding is purely forbidden". Panic buying as well as hoarding last year was a key factor in increasing the price of polysilicon as well as modules as firms scrambled to secure supply to meet customer demand.

Currently, the Chinese government is getting in touch with its solar industry to create long-term "strategic alliances" and coordinate on the manufacturing and also supply of key silicon materials as well as products as it performs "joint research study to promote industrial quality renovation, cost decreases and effectiveness enhancement."

In addition, it stated the industry ought to "abide by the overall planning of epidemic prevention and also control". China, unlike most of the rest of the globe, is pursuing a zero-COVID strategy that has actually currently seen industrial centres closure complying with little outbreaks and also the key export hub of Shanghai closed for numerous weeks in April.

And the call for greater assimilation as well as facilities growth has actually been made a lot more important this week as China's PV industry has actually been hit by power rationing complying with extreme heat in some provinces. This has forced some significant PV supply to cut their production outcome in key regions.

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