Better policy seen as driving innovation

A humanoid robot works on the production line of a factory in Ningbo, Zhejiang province. ZHENG XUEXIONG/FOR CHINA DAILY More policies are expected to stimulate innovation among businesses, enabling them to cultivate unique competitive advantages in response to the intense price-focused competition prevalent in certain industries, said analysts. And some local governments overemphasize the development of emerging industries regardless of their industrial foundation, thereby risking issues like redundant infrastructure construction and inefficient use of financial resources. The latest data from the China Photovoltaic Industry Association show that despite significant year-on-year growth of production volumes of key components like polycrystalline silicon, silicon wafers, cells and modules — all of which exceeded 20 percent in the first 10 months — prices for these components have experienced substantial drops, with polycrystalline silicon falling by over 35 percent, wafers in excess of 45 percent, and cells and modules by over 25 percent. Wei Jigang, deputy director-general at the Institute for Market Economy, Development Research Center of the State Council, highlighted the inefficiencies in resource allocation within certain industries, particularly in some heavy industries and emerging sectors navigating through supply-demand imbalances and surplus outdated capacity, resulting in a continuous decline in investment efficiency.