Beijing's crackdown on solar panel oversupply ‘too little, too late': US advisory firm
Global
solar panel prices are expected to remain low through much of 2025 as Beijing's actions to curb oversupply in the photovoltaic (PV) industry are 'too little, too late', according to a report.
Advertisement
'Current measures lack sufficient substance to impact the already established online manufacturing capacity, which is the primary reason international PV module and input pricing remain so low,' said Joseph Johnson, associate director for market intelligence at US advisory firm Clean Energy Associates (CEA), in a report on Tuesday.
The Chinese government recently said it would address industrial oversupply this year. In February, the Ministry of Industry and Information Technology (MIIT) said it would limit expansion of low-quality production capacity with policies to be unveiled later this year focused on technological development, industry standards and intellectual property rights.
The announcement followed
a series of measures from the government and industry bodies over the past six months. In December, a group of more than 30 leading solar PV manufacturers proposed limiting production and increasing market pricing. And in November, the MIIT introduced rules to raise investment and efficiency standards for domestic PV manufacturing.
'While efforts are likely to cool investments in new production capacity, this does not mean that a sharp market correction will be induced by the policy measures,' Johnson said. 'Instead, a gradual recovery in pricing is anticipated.'
Advertisement
In China, solar cells, modules, and polysilicon have seen moderate price increases since the beginning of the year, which is largely attributable to a rush of solar panel installations after the National Energy Administration issued a new policy covering distributed solar power generation in January. The policy applies to projects put into operation after May.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTHK
10 hours ago
- RTHK
Vice premier He calls for equal dialogue with US
Vice premier He calls for equal dialogue with US At the London trade talks are, from left, Jamieson Greer, Howard Lutnick, Scott Bessent, He Lifeng, Commerce Minister Wang Wentao, and Chinese International Trade Representative and Vice Minister of Commerce Li Chenggang. Photo: AFP The United States should resolve trade disputes with China through equal dialogue and mutually beneficial cooperation, Vice Premier He Lifeng said. China reiterates that the United States should work with China to honour their words with actions and demonstrate sincerity in keeping commitments and concrete efforts to implement consensus so as to jointly safeguard the hard-won outcomes of dialogue, He said. The vice premier made the remarks during the first meeting of the China-US economic and trade consultation mechanism held in London on Monday and Tuesday with the US delegation led by Treasury Secretary Scott Bessent and including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. During the talks, the two sides held candid and in-depth talks and thoroughly exchanged views on economic and trade issues of mutual concern. The two sides reached a principled agreement on implementing the important consensus reached by the two heads of state during their phone call on June 5 and the framework of measures to consolidate the outcomes of the economic and trade talks in Geneva, and made new progress in addressing each other's economic and trade concerns. Calling the meeting an important consultation held under the guidance of the strategic consensus reached by the two heads of state on June 5, He said China's position on Sino-US economic and trade issues is clear and consistent. Noting that the essence of Sino-US economic and trade relations lies in mutual benefit and win-win cooperation, he said cooperation in the economic and trade field benefits both sides, while confrontation harms both. There are no winners in trade wars, he said, adding that China does not seek conflict but will not be intimidated by one. The vice premier urged the United States to resolve trade disputes with China through equal dialogue and mutually beneficial cooperation, adding that while China is sincere in pursuing economic and trade consultations, it also has its principles. Next, the two sides should, in accordance with the important consensus and requirements reached by the two heads of state during their phone call, make better use of the China-US economic and trade consultation mechanism and work to enhance their consensus, reduce misunderstandings and strengthen cooperation, He said. The two sides should maintain communication and consultation and promote the steady and sustained growth of Sino-US economic and trade relations so as to inject more certainty and stability into the world economy, He added. The US side said that the meeting had achieved positive outcomes and further stabilized bilateral economic and trade relations, adding that it would walk in the same direction as China in accordance with the requirements of the phone call between the two heads of state to jointly implement the consensus reached at this meeting. (Xinhua)
RTHK
11 hours ago
- RTHK
Hang Seng Index ends up on progress in trade talks
Hang Seng Index ends up on progress in trade talks The Hang Seng Index ended up 204.07 points, or 0.84 percent, at 24,366.94. File photo: RTHK Mainland Chinese and Hong Kong stocks climbed on Wednesday, lifted by optimism over progress in Sino-US trade talks, although investors awaited further details on the framework agreed upon by the two countries. In Hong Kong, the benchmark Hang Seng Index ended up 204.07 points, or 0.84 percent, at 24,366.94. In the mainland, the benchmark Shanghai Composite Index ended up 0.52 percent to 3,402.32. The Shenzhen Component Index closed 0.83 percent higher at 10,246.02. The gains came after US and Chinese officials said they had agreed on a framework to put their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade differences. "This is positive news to the market," said Mark Dong, co-founder of Minority Asset Management. "At least now there's a bottom line that neither side is willing to cross. "Going forward, both sides will move toward reducing the trade imbalance." Zeng Wenkai, the chief investment officer at Shengqi Asset Management, said markets had likely expected the outcome. "People have realised that kneeling gets you nowhere – in fact, it only invites more bullying," Zeng said, adding that countries are now adopting a tougher stance in negotiations with the United States. The CSI Rare Earth Index gained more than 3 percent, while China's semiconductor index fell 0.1 percent. "The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head East," said Chris Weston, head of research at Pepperstone. "But for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." Tech majors traded in Hong Kong advanced 1.1 percent China's auto stocks climbed nearly 2 percent after several major automakers, including BYD, Chery and Geely, pledged to pay suppliers within 60 days. (Reuters/Xinhua)
HKFP
13 hours ago
- HKFP
US, China agree on trade ‘framework' after high-level talks in London
Top officials from the United States and China said Tuesday that they had agreed on a 'framework' to move forward on trade, following two days of high-level talks in London to resolve tensions. US Commerce Secretary Howard Lutnick expressed optimism after a full day of negotiations that concerns surrounding rare earth minerals and magnets 'will be resolved' eventually, as the deal is implemented. But this framework will first need to be approved by leaders in Washington and Beijing, officials said, at the end of meetings at the British capital's historic Lancaster House. All eyes were on the outcomes of negotiations as both sides tried to overcome an impasse over export restrictions. US officials earlier accused Beijing of slow-walking approvals for shipments of rare earths. The world's two biggest economies were also seeking a longer-lasting truce in their escalating tariffs war, with levies currently only temporarily on hold. 'We're moving as quickly as we can,' US Trade Representative Jamieson Greer told reporters. 'We would very much like to find an agreement that makes sense for both countries,' he added, noting that the relationship was complex. 'We feel positive about engaging with the Chinese,' he maintained. Speaking separately to reporters, China International Trade Representative Li Chenggang said: 'Our communication has been very professional, rational, in-depth and candid.' Li expressed hope that progress made in London would help to boost trust on both sides. Productive talks US Treasury Secretary Scott Bessent earlier described the closely watched trade talks as productive, although scheduling conflicts prompted his departure from London with negotiations still ongoing. Bessent, who led the US delegation with Lutnick and Greer, left early to return to Washington for testimony before Congress, a US official told AFP. Chinese Vice Premier He Lifeng headed his country's team in London, which included Li and Commerce Minister Wang Wentao. Both sides do not yet have another gathering scheduled. But Lutnick said Tuesday that US measures imposed when rare earths 'were not coming' would likely be relaxed once Beijing moved forward with more license approvals. Global stock markets were on edge, but Wall Street's major indexes climbed on hopes for progress earlier Tuesday. The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs. This time, China's exports of rare earth minerals — used in a range of things including smartphones, electric vehicle batteries and green technology — were a key issue on the agenda. 'In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,' US President Donald Trump's top economic adviser, Kevin Hassett, told CNBC on Monday. Even though Beijing was releasing some supplies, 'it was going a lot slower than some companies believed was optimal', he added. 'Mirror arsenal' Both countries 'have developed almost a mirror arsenal of trade and investment weapons that they can aim at each other,' said Emily Benson, head of strategy at Minerva Technology Futures. As they tap economic tools to try and shift global power structures, she told AFP, it may not be reasonable to expect a typical trade and investment deal. But both sides could find ways to level off a downward spiral. A dialing-down of temperatures could involve Chinese efforts to shore up the process for granting export control licenses, Benson said. She noted Beijing appeared understaffed given the volume of requests. On the US side, this could look like a relaxation of certain export curbs in the high-tech domain, she added. But observers remained cautious, with Thomas Mathews of Capital Economics warning that Washington was unlikely to 'back off completely.' This could weigh on markets. Since returning to office, Trump has slapped a 10 percent levy on friend and foe, threatening steeper rates on dozens of economies. His tariffs have dented trade, with Beijing data showing Chinese exports to the United States plunged in May. The World Bank on Tuesday joined other international organizations to slash its 2025 global growth forecast amid trade uncertainty. China is also in talks with partners including Japan and South Korea to try to build a united front countering Trump's tariffs.
