Core Viewpoint - The central government emphasizes the need to address "involution" in competition, particularly in the photovoltaic industry, to promote product quality and orderly market competition [1][3]. Industry Challenges - The photovoltaic industry is facing significant operational pressure due to supply-demand mismatches and chaotic low-price competition, which threatens long-term development [2]. - Some companies are resorting to low-cost sales strategies, which compromise product quality and safety, leading to potential risks in photovoltaic power stations [2]. Policy Initiatives - The upcoming Central Economic Work Conference has identified the comprehensive rectification of "involution" competition as a key focus for 2025, reflecting a commitment to improving market order [2]. - The National Development and Reform Commission plans to implement targeted measures to address structural contradictions in key industries, promoting healthy development and quality upgrades [2]. Technological Innovation - To overcome "involution," the photovoltaic industry needs to combine price regulation, capacity control, and quality enhancement, gradually phasing out outdated production capacity [4]. - The Ministry of Industry and Information Technology has set higher industry standards to accelerate upgrades and eliminate outdated capacity [5]. Company Developments - Leading companies in the photovoltaic supply chain are actively reducing costs and enhancing competitiveness through technological advancements. For instance, GCL-Poly's average production cash cost for granular silicon was approximately 27.07 yuan/kg in Q1 2023, down from 33.18 yuan/kg in Q3 2022 [6]. - Longi Green Energy announced significant technological breakthroughs, achieving a record conversion efficiency of 33% for its large-area silicon-perovskite tandem solar cells and over 26% for its BC cell modules [6]. Investment in R&D - Longi Green Energy's R&D investment for 2024 is projected to be around 5 billion yuan, indicating a strong commitment to innovation and technology development [7]. - The ongoing efforts to eliminate excess capacity in the photovoltaic industry are seen as an opportunity for companies to enhance their competitiveness and transition towards a technology-driven growth model [7].