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Investing.com -- China’s solar industry association urged manufacturers on Friday to stop selling components below cost and called for market competition based on "survival of the fittest" principles, amid concerns about industry oversupply.
The China Photovoltaic Industry Association released a statement on its WeChat account following several days of consultations with solar industry representatives and government stakeholders. The group did not explicitly call for capacity closures to address the oversupply issues plaguing the sector.
The association advised companies to schedule production based on market supply and demand conditions and to strictly follow China’s price law. This guidance appears to target the common industry practice where manufacturers expand production to maintain market share while undercutting competitors, which has led to significant overcapacity.
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