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Polysilicon industry needs to support and strengthen the survival of the fittest
China has made significant progress in the five-year development of the polysilicon industry, from raw material sourcing to importation, which has helped secure more than half of the photovoltaic industry’s self-sufficiency. However, currently, 90% of enterprises have halted production, and this high-tech emerging materials sector is now facing a severe survival crisis. Zhu Gongshan, chairman of the China Photovoltaic Industry Alliance and a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), emphasized that the country's current industrial policy should focus on supporting and strengthening domestic industries while regulating both international and domestic market competition.
According to reports, with technological advancements and market integration, the energy consumption of the polysilicon industry has dropped significantly, and by-products are now fully recycled. In particular, the State Council executive meeting at the end of last year highlighted that the photovoltaic industry is a strategic emerging sector, underscoring its importance for future economic growth and energy transition.
Zhu Gongshan pointed out that currently, about half of China’s photovoltaic polysilicon raw materials are still imported, and there is a large amount of low-end production capacity within the domestic polysilicon industry. He stressed that the sector needs to support and strengthen the "survival of the fittest" model. Facing intense price competition from foreign companies, the early development stage of China’s polysilicon industry is in serious trouble, with 90% of companies having stopped operations. If this trend continues, the entire industry could face the risk of being completely wiped out.
To address these challenges, the Zhu Gongshan Committee proposed accelerating the resolution of anti-dumping and anti-subsidy cases involving imported polysilicon and cracking down on unfair competition caused by low-cost dumping. Additionally, they recommended including the import of polysilicon in the prohibited category for processing trade, shifting it back to general trade supervision to combat various forms of anti-dumping and tax evasion.
He specifically suggested restoring the export tax rebate rate for polysilicon and silicon wafers to 17%. Zhu explained that China’s leading polysilicon companies have mature technology and cost control capabilities, but the current tax policy has weakened their international competitiveness. By allowing polysilicon and silicon wafers to benefit from the same export tax rebate rates as high-tech products, it would help boost the global competitiveness of Chinese photovoltaic products.
The situation highlights the urgent need for policy support and structural adjustments to ensure the long-term sustainability of the polysilicon industry, which plays a crucial role in China’s clean energy strategy.