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MIIT Outlines Market-Legal Drive to Force Orderly Exit of Backward PV Capacity

The move responds to a price collapse, export declines and falling product quality that have strained the sector.

Overview

  • Electronic Information Department director Yang Xudong said regulators will tighten capacity control, strengthen project management and advance a unified national market to rebalance supply through orderly exits.
  • Authorities will upgrade price monitoring and enforce the Anti-Unfair Competition Law to curb below-cost sales, false marketing and other price violations.
  • Product oversight will intensify with inspections and follow-up actions against substandard quality, power overstatement and intellectual property infringement.
  • Officials labeled 2026 the opening year of the 15th Five-Year Plan and a critical phase for industry governance, aligning with plans to add more than 200 GW of new wind and solar capacity.
  • Despite rapid buildout—about 230 GW added in January–August 2025 for 1.12 TW total—industry data show steep declines in polysilicon and cell prices, a 26.8% drop in first-half exports and lower module pass rates.