SAMR encourages PV firms to focus on quality, not price undercuts

China's market regulator warned solar manufacturers against destructive price competition on Friday, stepping up Beijing's efforts to curb cutthroat competition that has squeezed profits across the photovoltaic industry.

The State Administration for Market Regulation invited 27 photovoltaic companies, industry representatives, and officials from several government agencies to Yancheng, Jiangsu province and urged firms to shift competition from prices to product quality and accelerate the sector's high-quality development.

SAMR urged solar companies to strengthen cost accounting, establish comprehensive price compliance systems, and conduct internal reviews to ensure pricing practices comply with regulations. Companies should adopt rational pricing strategies, resist malicious below-cost competition, and help maintain orderly market prices, the regulator said.

Leading companies should set an example by strictly complying with pricing and competition rules, SAMR said, while industry associations should strengthen self-regulation and promote the adoption of cost accounting standards to help prevent below-cost dumping and other illegal pricing practices.