US Solar Boom Exposes Back Door to Banned Chinese Products

• India's booming solar industry faces concerns over forced labor in Chinese components, as US ban creates opportunity for Indian producers to expand market share.

India's booming solar industry has raised concerns about the use of components made with forced labor in China. Waaree Energies, India's largest solar producer, has sent millions of panels to the US with components from Chinese company Longi Green Energy Technology, which has faced repeated denials of entry to the US market over forced labor concerns. The components are used in Waaree panels installed in solar farms in Texas and other states. The US Customs and Border Protection's ban on products tied to the repression of Uyghur people in China's Xinjiang region has created an opportunity for Indian solar producers, who exported nearly $2 billion worth of panels to the US in the first 11 months of 2023.

The focus on China has led to increased scrutiny of Indian solar imports, as there is a risk that panels made in India may also be affected by forced labor. The US Customs and Border Protection has detained thousands of shipments of solar panels made by Chinese-owned companies since June 2022, but Indian companies have not been detained so far. The enforcement of the ban has been criticized for being uneven, with some suggesting that geopolitics may be at play. India's solar industry is set to further expand its market share in the US this year when anti-dumping and countervailing duty tariffs on solar products from Southeast Asia come into effect in June.

Is India's booming solar industry at risk of using components made with forced labor?

• The US ban on products tied to forced labor in China's Xinjiang region has raised concerns about the use of components made with forced labor in India's booming solar industry.
• Waaree Energies, India's largest solar producer, has sent millions of panels to the US with components from Chinese company Longi Green Energy Technology, which has faced repeated denials of entry to the US market over forced labor concerns.
• These components from Longi Green Energy Technology are used in Waaree panels installed in solar farms in Texas and other states.
• While Chinese-owned companies have faced detention of shipments of solar panels by the US Customs and Border Protection since June 2022, Indian companies have not been detained so far.
• However, there is a risk that panels made in India may also be affected by forced labor, leading to increased scrutiny of Indian solar imports.
• The enforcement of the ban on forced labor has been criticized for being uneven, with suggestions that geopolitics may be at play.
• India's solar industry is expected to further expand its market share in the US this year when anti-dumping and countervailing duty tariffs on solar products from Southeast Asia come into effect in June.