China unconditionally approves Tongwei’s acquisition of polysilicon firm Lihao Qingneng
On September 24, China's State Administration for Market Regulation unconditionally approved Tongwei Co., Ltd.'s acquisition of Qinghai Lihao Qingneng Co., Ltd., a solar-grade polysilicon producer. Despite the combined entity's high market share, SAMR concluded sufficient capacity and competitors exist to maintain competition. The decision supports market-based mergers to optimize resource allocation and reduce low-level homogeneous competition, known as "involution." Tongwei has over 900,000 tons annual capacity; Lihao has over 200,000 tons.
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China unconditionally approves Tongwei's acquisition of solar polysilicon firm Lihao Qingneng
On September 24, China's State Administration for Market Regulation (SAMR) announced it had unconditionally approved Tongwei Co., Ltd.'s acquisition of Qinghai Lihao Qingneng Co., Ltd. (Lihao Qingneng). The decision, published on SAMR's official website, follows a review of the merger in the photovoltaic (PV) sector. Tongwei operates across multiple PV supply chain segments including industrial silicon, polysilicon, silicon wafers, solar cells, and modules, while Lihao Qingneng primarily produces solar-grade polysilicon. SAMR stated the transaction aims to integrate polysilicon capacity and enhance supply chain synergies. Despite the combined entity's high market share in the global and Chinese solar-grade polysilicon market, SAMR concluded that current market conditions—ample capacity and numerous competitors—ensure sufficient competitive constraints post-merger, preventing any exclusion or restriction of competition. The regulator framed the approval as supporting market-based mergers to optimize resource allocation and reduce low-level homogeneous competition. SAMR pledged to continue efficient antitrust review to foster fair competition and high-quality industrial development.
Read sourceChina's market regulator unconditionally approves Tongwei's acquisition of Lihao Qingneng
On September 24, China's State Administration for Market Regulation (SAMR) unconditionally approved silicon giant Tongwei Co., Ltd.'s acquisition of Qinghai Lihao Qingneng Co., Ltd., stating the deal will not exclude or restrict competition in the solar-grade polysilicon market despite the combined entity's high market share. The regulator emphasized that the decision supports market-based mergers to optimize resource allocation and combat low-level homogeneous 'involution' competition. Tongwei had announced the planned 100% acquisition on February 24, 2025, and by June 2025 had an annual high-purity silicon capacity exceeding 900,000 tons, while Lihao had over 200,000 tons of operational capacity. The approval follows multiple government actions this year to curb overcapacity in the photovoltaic sector, including joint ministry meetings in April and new energy consumption standards in July. On August 6, eight major polysilicon companies signed an 'Anti-Involution Initiative' pledging not to sell below cost and to phase out outdated capacity. The article notes that industry efforts to stabilize prices through a storage platform were previously blocked by regulators, and that two leading firms have begun reducing production, with further cuts expected after October.
Read sourceChina's Market Regulator Unconditionally Approves Tongwei's Acquisition of Lihao Qingneng
On September 24, China's State Administration for Market Regulation (SAMR) unconditionally approved Tongwei Co., Ltd.'s acquisition of Qinghai Lihao Qingneng Co., Ltd., a major polysilicon producer. SAMR stated the decision supports market-based mergers to optimize resource allocation and combat low-level homogeneous 'involution' competition. Tongwei, a polysilicon leader with over 900,000 tons annual capacity, is acquiring Lihao, which has over 200,000 tons capacity and ranks in the industry top ten. Despite the combined entity's high market share in solar-grade polysilicon, SAMR concluded the market has sufficient capacity and competitors to maintain effective competition. The approval follows multiple government actions this year to curb overcapacity and 'involution' in the solar industry, including joint ministry meetings, new energy consumption standards, and an industry 'Anti-Involution Initiative' signed by eight major polysilicon firms in August. The initiative pledges to avoid below-cost pricing and phase out outdated capacity. The article notes that earlier industry efforts to form a polysilicon purchasing platform were blocked by regulators. A futures analyst suggests recent production cuts by two leading polysilicon firms may strengthen industry confidence in anti-involution measures.
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China's Market Regulator Unconditionally Approves Tongwei's Acquisition of Lihao Qingneng Stake
China's State Administration for Market Regulation (SAMR) has unconditionally approved Tongwei Co., Ltd.'s acquisition of a stake in Qinghai Lihao Qingneng Co., Ltd., according to a report from People's Financial Information on September 24. The decision, announced via the official 'Shi Shuo Xin Yu' social media account, marks a significant merger in China's photovoltaic (solar) industry. Tongwei, listed as 600438, has operations across multiple segments including industrial silicon, polysilicon, silicon wafers, solar cells, and photovoltaic modules. Lihao Qingneng primarily produces solar-grade polysilicon. The transaction aims to integrate polysilicon production capacity and enhance supply chain synergies. SAMR stated that after a thorough competition analysis, the unconditional approval reflects a regulatory stance supporting market-based mergers and acquisitions to optimize resource allocation and reduce low-level, homogeneous, 'involution-style' competition. The regulator pledged to continue improving anti-monopoly review efficiency for business concentrations to ensure fair competition and support high-quality industrial development.
Read sourceChina's Market Regulator Unconditionally Approves Tongwei's Acquisition of Lihao Qingneng Stake
China's State Administration for Market Regulation (SAMR) has unconditionally approved Tongwei Co., Ltd.'s acquisition of a stake in Qinghai Lihao Qingneng Co., Ltd., a major merger in the solar photovoltaic industry. Tongwei operates across multiple segments including industrial silicon, polysilicon, silicon wafers, solar cells, and modules, while Lihao Qingneng primarily produces solar-grade polysilicon. The deal aims to integrate polysilicon capacity and enhance supply chain synergies. SAMR conducted an in-depth investigation, consulting industry associations and upstream/downstream companies. Although the combined entity holds a high share of the global and Chinese solar-grade polysilicon market, the regulator found that current market conditions—ample capacity and numerous competitors—ensure effective competitive constraints, preventing any anti-competitive effects. The decision reflects SAMR's policy of supporting market-driven mergers to optimize resource allocation and reduce low-level homogeneous competition, known as 'involution.' SAMR stated it will continue to improve antitrust review efficiency to promote fair competition and industrial upgrading.
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