China Plans Tougher Solar Manufacturing Rules to Slow Expansion

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Workers brave the scorching heat in June 2022 to install solar panels in Shiyan, Central China’s Hubei province. Photo: VCG

China has proposed tightening the regulations for solar manufacturing in a sign that it is trying to cool the overheated industry following warnings from industry executives.

The Ministry of Industry and Information Technology (MIIT) published two draft amendments on Tuesday, which set higher bars for the industry in several key areas, including minimum investment, product standards and companies’ qualifications. The proposed revisions of the rules, which were last updated in 2021, are open to public feedback until July 15.

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China proposes stricter solar manufacturing regulations to address industry overcapacity, including higher investment requirements and stricter product standards.
MIIT draft amendments increase minimum capital ratio to 30% and enhance intellectual property protections, with feedback open until July 15.
The move responds to warnings from industry executives about disorderly growth and aims to consolidate resources and improve product quality.

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Who’s Who

Longi Green Energy Technology Co. Ltd.: Longi Green Energy Technology Co. Ltd. is a prominent player in China's solar manufacturing industry. According to the article, its chairman, Zhong Baoshen, highlighted the issue of inadequate intellectual property protection, which has led to rapid technology dissemination. He emphasized the need for better IP protection to curb disorderly expansion and maintain product quality.

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What Happened When

2021：: The last update of the regulations for solar manufacturing before the new draft amendments.

last month (relative to June 2024)：: China’s energy regulator pledged to take steps to slow the expansion of the solar industry, such as limiting the addition of 'low-end' manufacturing capacity.

June 2024：: Bosses from some of China’s largest solar manufacturers warned of interim overcapacity at a trade conference in Shanghai.

by July 15, 2024：: Deadline for public feedback on the proposed revisions of the rules.

Tuesday (specific date not provided)：: The Ministry of Industry and Information Technology (MIIT) published two draft amendments setting higher regulations for the solar manufacturing industry.

AI generated, for reference only