China’s Ministry of Industryand Information Technology said companies must invest at least 3% of their total sales, or a minimum of 10m yuan ($1.6m), on research and development.

There are also new rules covering capacity addition, product certification, supplyand service capabilities, and minimum performance levels for modules produced.

Analysts said the regulations are part of a wider attempt to deal with a surpluscapacity of lower-end products.

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