Eight leading Chinese polysilicon manufacturers have signed a binding industry self-regulation agreement, known as the Anti-Involution Initiative, to curb excessive price competition and support healthier market conditions in the solar value chain. The signatories are GCL Technology, Tongwei, Daqo New Energy, Xinte Energy, East Hope New Energy, Lihao Clean Energy, Asia Silicon Industry (Qinghai) and Xinjiang Ge’ensi Energy. Several rank among Bernreuter Research’s top 10 polysilicon producers for 2024, and together they account for 93,5% of global supply.
The pact was signed in Shanghai on 6 August 2026 after multiple rounds of talks, according to local media. The companies said they share a common commitment to end destructive competition and to support the healthy development of China’s PV industry through self-regulation.
Under the agreement, the manufacturers pledge to comply with China’s Price Law, Anti-Unfair Competition Law and Anti-Monopoly Law by ensuring that solar PV products are not sold below the cost calculated according to the General Rules for Cost Accounting Models in the Photovoltaic Industry, prepared by the China Photovoltaic Industry Association. They have agreed to avoid selling polysilicon below cost and to strengthen industry discipline through coordinated actions. The group will follow fair competition practices, improve production planning based on market demand and avoid disorderly capacity expansion.
The signatories will also abide by new energy consumption standards, phase out production capacity that does not meet national standards and regulate expansion. According to the agreement, the companies pledged to maintain orderly market competition and support the industry’s long term, sustainable development, with violations subject to disciplinary measures under the agreed framework.
The move follows recent guidance from China’s State Administration for Market Regulation, which called for greater compliance with pricing regulations across the solar PV industry.
In a related development, the Chinese Ministry of Commerce released an official document titled China’s Position on the So-Called Excess Capacity Issue. It denies a connection between industrial subsidies and excess capacity and argued that rapid growth in China’s modern industries is driven by innovation. The position paper stated that it has never been China’s intention to seek a trade surplus.
Author: Bryan Groenendaal
June 29, 2026
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