China says solar sector needs to curb overcapacity

HONG KONG, Aug 19 (Reuters): China's industry ministry said on Tuesday it held a meeting with solar industry representatives, the second in two months, as it urged the sector to strengthen regulations, curb overcapacity and reduce extreme competition among firms.

Representatives at the meeting were told to "jointly promote the healthy and sustainable development of the industry", the ministry said in a statement.

It said parties must "curb low-price disorderly competition", referring to overcapacity in the sector. The discussion followed a meeting in July where the ministry said that authorities should "promote the orderly exit of outdated production capacity", heightening expectations for the government to tighten the reins on the bloated sector.

A late July meeting of the Politburo, which usually sets China's economic direction for the year, further raised hopes that the government would start a long-awaited campaign against deflation.