China Solar Firms React to US Trade Barriers

Jun 5, 2024 09:42 AM ET
  • Chinese solar firms face uncertainty as US trade barriers force production halts in Southeast Asia, impacting exports and sparking industry adjustments.
China Solar Firms React to US Trade Barriers

Chinese solar firms are halting production at Southeast Asian factories due to increased US trade barriers, creating uncertainty for exports from the region. Longi Green Energy Technology Co. has begun winding down activity at a plant in Malaysia and halted production lines at a facility in Vietnam. Trina Solar Co. has also suspended output at a factory in Thailand. The companies are making adjustments to combat plunging prices and trade policy changes.

The Biden administration has issued rules strengthening tariffs against solar equipment, ending a two-year reprieve for certain solar imports from Cambodia, Malaysia, Thailand, and Vietnam. US solar manufacturers are petitioning for additional duties on equipment imported from these countries, which accounted for over 70% of US module imports last year. Manufacturers in the four nations have halted purchases of raw materials while awaiting more clarity.

How are Chinese solar firms responding to increased US trade barriers in Southeast Asia?

  • Chinese solar firms are exploring alternative markets in response to the increased US trade barriers in Southeast Asia.
  • Some Chinese solar companies are considering relocating production facilities to other countries outside of Southeast Asia to avoid the impact of the trade barriers.
  • Chinese solar firms are also looking to diversify their supply chains and source raw materials from different regions to mitigate the effects of the trade barriers.
  • The trade barriers have led to a slowdown in investments in the Southeast Asian solar industry, as Chinese firms are reevaluating their strategies in the region.
  • Chinese solar firms are engaging in dialogue with US authorities to address concerns and find a resolution to the trade barriers, in order to resume exports from Southeast Asia.

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