China’s antitrust regulator has halted an industry-led effort to reduce polysilicon capacity and coordinate prices, ordering a full rectification of actions that contributed to rising market prices. Futures fell sharply after the intervention.
China’s State Administration for Market Regulation (SAMR) convened a closed-door meeting in Beijing on January 6 with the China Photovoltaic Industry Association (CPIA) and key participants involved in a $7 billion plan to reduce polysilicon overcapacity, sources told pv magazine.
The plan involved China’s six largest polysilicon producers – Tongwei, GCL, Daqo, The six companies together have a capacity of almost 2.5 million tonnes (MT); the rest of the industry accounts for 700,000 tons.
SAMR reportedly flagged monopoly risks associated with the inventory platform established on December 9 and said participating companies had coordinated since July 2025 under the banner of “industry self-discipline” through commitment letters, consolidation plans and dynamic supply adjustment measures.
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The regulator said these measures had contributed to rising polysilicon prices and amounted to coordinated control over production and sales volumes, market allocation through capital contribution and pressure on margins further down the chain. SAMR instructed associations and companies to review all actions, submit documentation including agreements, minutes of meetings and reports and implement corrective actions.
SAMR specifically prohibited any agreements on production or sales volumes, capacity, prices, production quotas, profit sharing, market sharing or exchange of price and production information. All parties must submit written recovery plans by January 20.
A SAMR official said this ex-ante intervention warns the industry that violations will lead to formal investigations and enforcement action. Industry sources confirmed that CPIA has suspended monthly coordination meetings and suspended all previously agreed production and price control measures.
The market responded immediately. Polysilicon futures on the Guangzhou Futures Exchange fell 9% on January 8, hitting the daily downside limit, and fell another 8.11% on January 9, closing at CNY51,300/MT, near the October 2025 level.
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