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According to a research report by China Securities, the central government is placing emphasis on rectifying the 'involutionary' competition within the new energy industry, with the ultimate goal of fostering a recovery in industry profits. Presently, the profitability of both the photovoltaic and lithium battery sectors is at a nadir, with the photovoltaic industry enduring particularly acute losses. From a policy standpoint, the photovoltaic sector will prioritize addressing low-price competition and fostering capacity integration, while the lithium battery sector will stress elevating standards, restraining expansion, and encouraging the phase-out of outdated capacity. While related product prices have recently rebounded, the industry must still assess the tangible impact of supply-side integration.
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