China’s top market regulator has thrown a massive wrench into the solar industry‘s plans. In a closed-door meeting on January 6, 2026, the State Administration for Market Regulation (SAMR) summoned major polysilicon producers to Beijing and fundamentally told them their $7 billion consolidation scheme was dead in the water.
Surprise, surprise – fixing prices isn’t exactly legal, even in China.
The meeting targeted industry heavyweights like Tongwei, GCL, Daqo, and Xinte who had been working with the China Photovoltaic Industry Association (CPIA) to address what they called an “oversupply problem.” Their brilliant solution? Form a joint venture called Beijing Guanghe Qiancheng Technology, pool RMB 50 billion, and buy up a third of production capacity to shut it down.
Oh, and coordinate prices while they’re at it. Real subtle.
SAMR wasn’t having it. They explicitly banned agreements on production volumes, pricing coordination, information exchanges, and market division schemes.
The regulator made it crystal clear – this kind of cartel-like behavior would trigger formal investigations and enforcement actions. No exceptions.
The market reacted instantly. Polysilicon futures crashed 9% on January 8, hitting the daily limit. The next day? Another 8.11% drop.
Prices fell back to October 2025 levels, closing at CNY 51,300 per metric ton. So much for that coordinated price floor.
Now these companies have until January 20, 2026, to submit written rectification plans. The CPIA has already suspended its monthly coordination meetings – those gatherings where competitors just happened to discuss production volumes and pricing.
What a coincidence!
The government’s message was blunt: fair competition, not industry collusion, is the proper way to address overcapacity. SAMR’s intervention was sparked by the suspicious stockpiling platform established on December 9, which raised immediate monopoly concerns.
This action comes as China’s Ministry of Commerce continues its expiry review process on anti-dumping measures for polysilicon imports from the US and South Korea.
Turns out even China draws the line somewhere when it comes to monopolistic behavior. The days of cozy industry coordination are over, and polysilicon giants are scrambling to adjust to this new reality.
Too bad their secret price-fixing plot got exposed.
References
- https://www.pv-magazine.com/2026/01/09/chinas-competition-regulator-halts-7-billion-polysilicon-consolidation-plan/
- https://www.pv-tech.org/china-reviewing-expiry-anti-dumping-polysilicon-us-south-korea/
- https://taiyangnews.info/markets/china-warns-polysilicon-firms-over-monopoly-risks
- https://www.fdd.org/analysis/2025/08/06/section-232-national-security-investigation-of-imports-of-polysilicon-and-its-derivatives/
- https://www.strtrade.com/trade-news-resources/tariff-actions-resources/section-232-investigation-polysilicon
- https://www.solarpowerworldonline.com/2025/12/polysilicon-tariffs-would-impact-full-solar-panel-supply-chain/
- https://www.indexbox.io/blog/china-halts-polysilicon-industry-plan-to-cut-capacity-on-antitrust-grounds/
