China Releases Draft Rule to Curb Excessive Solar Expansion
- Overcapacity has driven prices down and is expected to persist
- Loss-making producers have called for government intervention
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China’s government released a draft regulation to limit expansions in its world-leading solar industry, as domestic companies struggle with losses amid oversupply and fierce competition.
Authorities will curb new manufacturing projects that simply expand existing capacity, and direct companies to instead improve quality and bring down production costs, according to the draft rule released for public consultation on Tuesday by the Ministry of Industry and Information Technology.