An employee rushes to fulfill orders on the production line of a photovoltaic company in Lianyungang, east China’s Jiangsu province, 25 December 2024. From January to October, the production of polysilicon, wafers of silicon, cells and modules for photovoltaic energy increased by more than 20%. percent year-on-year, and the export volume of photovoltaic cells increased by more than 40 percent, according to official data. Photo: VCG

The China Energy Storage Alliance (CNESA) held a closed-door seminar in Beijing on Thursday to address involution-type competition in the new energy storage sector, with the participation of nearly 30 leading companies in the sector, confirmed a alliance employee at the Global Times. Thursday without further details.

A document obtained by Jiemian News indicates that the meeting covers three main discussion topics, one of which is “anti-involution competition and anti-loss-price competition”, and measures to prevent below-cost bidding.

The event also focused on discussions on measures to curb “involution”, including increasing entry thresholds, standardizing technical conditions, improving the standards system, strengthening levels of security protection and restriction of impulsive investments of local capital.
At the meeting, industry participants also discussed promoting high-quality development in the field of new energy storage and guiding key technological advancements.

The call to reject involution is positive as it seeks to promote healthy and sustainable industrial growth, Lin Boqiang, director of the China Energy Economy Research Center, said on Thursday. Xiamen University, to the Global Times. .

The central authorities also urged governments at various levels to take necessary measures to incentivize industries to strengthen self-discipline and prevent vicious “involutionary” competition.

At the annual Central Conference on Economic Work held in Beijing on December 11-12, the organization called for “addressing irrational competition and regulation of behaviors of governments and local businesses” , Xinhua reported.

This follows a meeting held on July 30 this year by the Politburo of the Central Committee of the Communist Party of China, which stressed that “it is indispensable to strengthen industry self-discipline to prevent ‘involutionary’ competition.” vicious. must be strengthened to ensure smooth channels for the exit of obsolete and inefficient production capacities,” as reported by Xinhua.

On Tuesday, two major domestic silicon materials companies, Tongwei Co and Xinjiang Daqo New Energy Co, announced via their official WeChat accounts that, to curb “involution” and prevent “vicious” competition, the two companies Silicon-based materials would implement orderly reductions in production and control production. .

It is worth noting that Yongxiang Co, a subsidiary of Tongwei, has a high-purity crystalline silicon production capacity of more than 900,000 tons and has maintained the highest market share in the world for several consecutive years, has reported national news portal ce.cn, noting that production cuts initiated by leading companies will have a significant positive impact on the industry.

Commenting on the measures taken by industry players, Lin said that “the fight against the ‘involution’ of the industry aligns with high-quality development…and if industry professionals achieve to better self-regulate, it will be a win-win situation in the long term.”

On December 5, at the 2024 Photovoltaic Industry Annual Conference, the China Photovoltaic Industry Association organized 33 major industrial enterprises to sign an industrial “self-discipline agreement”, Xinhua reported. This agreement calls on photovoltaic companies to voluntarily limit their production and prices, the report said.

In addition, the association is committed to deploying a professional team to on-site check the production capacity of more than 300 photovoltaic bases across the country, the report said.