News related to
China

A high-level delegation from Dubai Electricity and Water Authority, led by MD & CEO HE Saeed Mohammed Al Tayer, is in the People’s Republic of China to boost collaboration with leading firms in solar and battery storage technology. The mission aims to support Dubai’s clean energy ambitions under its 2050 strategies by examining advanced practices in renewable energy systems. DEWA Seeks Deeper Energy Ties With Chinese Firms, as the delegation intends, marks a pivotal move in cross-border energy engagement.

Al Tayer and his team engaged with Huawei, BYD, Tesla’s battery energy storage plant, Sungrow, and the CRRC Zhuzhou Institute to survey cutting-edge developments in photovoltaic panels, energy storage solutions, artificial intelligence applications, smart infrastructure, and Fourth Industrial Revolution advancements. These interactions reinforce DEWA’s commitment to integrating global expertise into its operations.

The delegation includes prominent executives such as Waleed bin Salman, Executive Vice President of Business Development and Excellence; Hussain Lootah, Executive Vice President of Transmission Power; Marwan bin Haidar, Executive Vice President of Innovation and the Future; Dr Yousef Al Akraf, Executive Vice President of Business Support and Human Resources; Mohammed Jamea, Vice President of Clean Energy and Diversification; and Ghanim Al Qassim, Senior Manager of Solar Energy. Their breadth of expertise equips DEWA to absorb and apply technological insights strategically.

Central to the discussions is the seventh phase of the Mohammed bin Rashid Al Maktoum Solar Park, currently at the tendering stage. This phase will incorporate 2,000 MW of photovoltaic solar capacity alongside 1,400 MW of battery energy storage, delivering six hours of storage—establishing it among the largest solar-plus-storage projects globally under the independent power producer model. The delegation’s visit underscores this project’s importance in shaping Dubai’s sustainable energy future.

China has issued a bold action plan to propel its electronic information manufacturing industry through 2025 and 2026, targeting sustained growth in industrial output, revenue, and technological capability as it seeks to strengthen its position in the global technology arena.

The plan, jointly issued by the Ministry of Industry and Information Technology and the State Administration for Market Regulation, sets forth a target of roughly 7 per cent average annual growth in industrial output across major segments—including computer, communications, and electronic equipment manufacturing. Revenue growth across related sub-sectors such as lithium batteries, photovoltaics and components is projected to exceed 5 per cent per annum.

Authorities further anticipate that by the close of 2026, the electronic information manufacturing category will retain its status as the largest among China’s 41 key industrial sectors in both revenue and export share. Ambitious local targets aim to elevate five provinces to over 1 trillion yuan in annual manufacturing revenues, with the server industry aiming to surpass 400 billion yuan.

Beyond output and revenue, the plan calls for accelerated equipment modernisation and the development of high-end, intelligent, and eco-friendly production lines. Central to this strategy is the creation of internationally competitive industry bases and specialised clusters serving smaller enterprises.

This industrial blueprint emerges amid broader national efforts to invigorate advanced manufacturing. In August, authorities unveiled new financial guidelines, integrating structural monetary instruments and “green channels” for critical technology firms, aimed at spurring innovation and easing access to capital for integrated circuits, industrial software, medical equipment and advanced materials. Concurrently, China continues to pursue consolidation within its semiconductor sector—though merger negotiations have encountered obstacles, reflecting legal, valuation and fragmentation challenges.

Observers note that China’s renewed emphasis on domestic capability complements longer-standing ambitions under industrial strategies such as “Made in China 2025”, which have driven progress in robotics, solar technology, electric vehicles and rail systems, yet left persistent weaknesses in semiconductors and aerospace.

The current two-year action plan appears to reinforce this trajectory by tying industrial upgrading to environmental standards and smart manufacturing. Provincial authorities are being pressed to deliver on revenue milestones, while the focus on intelligent and eco-friendly production signals an effort to align with global sustainability trends and elevate manufacturing sophistication.

This approach also reflects the government’s response to external pressure, including export controls and trade friction, by targeting resilience and self-sufficiency. By prioritising hubs and clusters, China aims to decentralise innovation and drive inclusive industrial progress across regions, not just within flagship firms or coastal areas.

The twin objectives of maintaining international leadership and building more advanced, cleaner industrial capacity are central to this strategy. As China moves into the mid-2020s, its success will depend on execution—not just on paper targets, but on implementation, regional mobilisation, talent development, and the ability to absorb and apply new technologies at scale.

A pivotal online gathering on Sunday will determine whether the Organisation of the Petroleum Exporting Countries and its allies proceed with further oil production increases or hold current levels. The group has already rolled back its earlier cuts by 2.5 million barrels per day, equivalent to around 2.4 per cent of global demand, and is now assessing whether to unwind the next 1.65 million bpd tranche ahead of schedule.

Markets responded to the impending meeting with cautious anticipation. Brent crude fell modestly, trading near $67 a barrel, while U. S. West Texas Intermediate hovered around $63–$64. Analysts, including those at ANZ, flagged that any additional supply could deepen the surplus during a typically weak demand season. The softening outlook has already rippled through equity markets: major oil producers and service firms such as APA, Occidental, Halliburton and Schlumberger saw their shares slip between 3 and 5 per cent.

Since April, OPEC+ has pursued an aggressive unwind of output curbs. Initial increases began with modest tranches but have since accelerated: April saw the first rise, followed by consistent monthly boosts—from 411,000 bpd in May, June and July to 548,000 bpd for August and 547,000 bpd for September. These decisions reflect strategic moves to regain market share amidst growing competition, especially from U. S. shale producers, and external pressures, including public calls from the U. S. administration to increase global supply.

Despite these ramped-up supplies, prices have retained considerable strength—hovering around the $70 mark—bolstered by low inventory levels and geopolitical constraints, particularly sanctions on Russia and Iran. Analysts at the Commonwealth Bank of Australia observe that OPEC+ now appears comfortable with Brent trading in the $60–$65 range, a level that could pressure U. S. shale operations by narrowing profit margins.

Meanwhile, data from the American Petroleum Institute indicated an unexpected rise of 622,000 barrels in U. S. crude stocks, counter to forecasts, adding another layer of downward pressure on prices. The situation reflects a delicate balance: rising supply meets lukewarm demand, particularly as global economic growth shows signs of softening in key regions like China, India and Brazil.

Executive voices within OPEC+ remain tight-lipped. No official statements were forthcoming from Riyadh or other capitals prior to the weekend meeting. Analysts remain split: some believe the group will maintain its current stance through October, exercising caution amid market saturation concerns. Others argue that continued increases are part of a calculated strategy to defend or expand market share well into next year.

China’s solar industry, particularly its polysilicon segment, is experiencing a defining shift. Six leading solar makers reported a combined loss of Rmb20.2 billion during the first half of 2025, prompting regulatory intervention to stem overcapacity and destructive price competition.

In early September, GCL Technology Holdings confirmed that investors can anticipate clarity soon on a plan to restructure the polysilicon industry—potentially this year. Chief Financial Officer Yang Wenzhong indicated that GCL may invest its own capital into the effort but is proceeding with caution amid financial uncertainty.

The core of this restructuring lies in a proposed RMB50 billion pooling of funds by top producers like GCL and Tongwei. The aim is to acquire and retire roughly one-third of existing production capacity, targeting approximately one million metric tonnes of lower-quality output. This supply reduction could help raise prices and restore downstream solar panel maker profitability.

Government authorities are reinforcing this market realignment through direct meetings with industry representatives. In August, China’s Industry Ministry held its second session in two months, urging the sector to eliminate outdated manufacturing capacity and curb “low-price disorderly competition” as part of a broader effort to reverse deflationary trends.

The policy response reflects concern over global glut: in 2024, China produced 588 GW of solar capacity while global demand stood at 451 GW, leaving utilisation at just 54%. Analysts estimate that up to 20–30% or more of solar manufacturing capacity must exit the market to reestablish profitability.

This state-guided consolidation faces substantial obstacles. Local governments that have boosted regional development through subsidies, tax breaks and favourable land deals for solar manufacturers may resist decommissioning facilities tied to local GDP and employment. Even if a cartel is formed, analysts warn that members might sneak back into production once prices rebound.

While the outlook remains complex, sentiment among investors appears cautiously optimistic. Markets showed tentative improvement after reports of progress in industry coordination and price gains surfaced. Trina’s commentary on earnings, describing polysilicon as “the first step of anti-involution,” hints at broader hopes for a turnaround.

Global attention is intensifying. Successful restructuring could reinforce China’s dominance—already controlling around 90% of global solar cell capacity—while disrupting cheap exports that have pressured international markets. But a failed effort could compound challenges in other overcapacity-prone sectors such as electric vehicles or shipbuilding.

Longi, another solar powerhouse, is also adapting. Its founder, Li Zhenguo, has relinquished daily management to focus on R&D, including back‑contact cell and green hydrogen technology. The shift comes amid sustained losses and an 80% decline in its share price since 2021, as analysts predict that overcapacity will persist through 2028.

China’s solar supply chain—from polysilicon to panels—is at an industrial crossroads. The restructuring effort is perhaps the boldest policy move yet to recalibrate supply with demand. But its success hinges on overcoming entrenched regional interests, ensuring disciplined industry behaviour, and catalysing sustainable demand growth.