National People's Congress Deputy and TCL Chairman Li Dongsheng: Empowering Advanced Manufacturing with Capital and Breaking the "Involution" in Photovoltaics through Restructuring

Shanghai Securities Journal Reporter Li Lingxi

National People’s Congress Deputy, TCL Founder and Chairman Li Dongsheng has been paying close attention to the development of China’s advanced manufacturing industry, actively engaging in technological innovation, industrial upgrading, and offering suggestions.

At the 2026 National Two Sessions, Li Dongsheng proposed recommendations on financing for advanced manufacturing enterprises and addressing “involution” in the photovoltaic industry, including expanding financing channels for companies and supporting leading photovoltaic firms to pursue market-based mergers and acquisitions.

Strengthening Financing Support for Advanced Manufacturing Enterprises

Currently, a new round of technological revolution and industrial transformation is accelerating, and global technological competition is becoming increasingly fierce. Li Dongsheng believes that breakthroughs in key technological fields are essential to support China’s economic transformation and upgrade, as well as enhance the core capabilities of technological manufacturing.

He stated that after more than 20 years of development, China’s semiconductor display industry has achieved global leadership in LCDs, is running neck and neck and leading in OLEDs, and other fields are catching up rapidly and gradually surpassing. However, the semiconductor display industry still requires continuous capital investment to compete in the long run and achieve breakthroughs. Additionally, the integrated circuit sector is limited by insufficient technological equipment and capital input, making increased capital support a crucial measure to break through industry bottlenecks and stimulate new industry momentum.

“Whether it’s capital-intensive industries like integrated circuits and semiconductor displays, or fields like industrial software and AI large models, sustained investment is needed,” Li Dongsheng said. In 2025, TCL plans to invest nearly 30 billion yuan in the semiconductor display sector to complete the second phase of the T9 project, build the world’s first large-scale G8.6 generation printed OLED production line, and acquire equity in LGD’s Guangzhou factory.

In Li Dongsheng’s view, cultivating world-class enterprises requires strengthening capital support. This depends not only on the companies’ own profitability but also on fully leveraging the financing functions of capital markets.

“Direct financing is key for private enterprises to engage in advanced manufacturing and achieve sustainable development,” Li Dongsheng suggested. He called for regulatory agencies to develop policies aligned with national industrial policies to support high-tech, asset-heavy, long-cycle industries.

Market-Oriented Restructuring to Break the Photovoltaic “Involution”

Since 2023, the photovoltaic industry has entered a deep adjustment phase. Li Dongsheng stated that during this rapid expansion of photovoltaic capacity, a large portion of capacity involving state capital has been difficult to clear, further intensifying “involution” competition within the industry.

Li Dongsheng believes there are generally two ways to address these issues: one is through market competition, relying on the survival of the fittest mechanism to push outdated capacity out of the market. While direct, this approach can lead to idle or abandoned existing capacity and physical assets, wasting social resources. The second is to promote mergers and restructuring, supporting leading companies to carry out market-based acquisitions and integrations, reducing disorderly competition among operators, and gradually achieving supply-demand balance.

For the second approach, Li Dongsheng recommends introducing relevant policies to allow state-owned capital funds and local governments to legally and compliantly adjust the value of state assets during exit processes. He also suggests guiding financial institutions to actively support mergers and acquisitions, establishing green channels for photovoltaic industry restructuring. “Accelerating M&A and integration in the photovoltaic industry will help improve industry capacity concentration and promote capacity utilization rates aligned with market demand,” Li Dongsheng said.

Li Dongsheng advised that state-owned capital funds supporting advanced industrial projects should adhere to four requirements: align with national industrial policy directions; limit the responsibilities of industrial funds; carefully select projects to ensure safe capital exit; and partner with operational entities capable of covering project risks.