Chinese Solar Firms Dodge US Tariffs with New Asian Hubs

chinese solar firms dodge us tariffs with new asian hubs

chinese solar firms dodge us tariffs with new asian hubs

Last updated on November 5th, 2024 at 06:44 am

Vietnamese factories are taking business away from Chinese solar manufacturers who have moved their production chain to Indonesia and Laos. Over the last 18 months, at least four projects led by Chinese or China-related began in those countries. And two more projects are still in the pipeline. Together, the PV projects stand at 22.9 GW of solar cell or panel manufacturing capacity that would be enough to meet half of America’s PV market.

The effects of tariffs from the US currently standing at over 300% for some producers are more evident in the Vietnam solar industry. Even Longi Green Energy Technology’s Vinasolar unit has laid off most of its workers in Bac Giang province with only one of nine production lines active. Likewise, Trina Solar has shut down a number of its production lines at its industrial park in Thai Nguyen province, proving the stringency of these trade barriers.

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Solar exports from Vietnam to the US rose by 74 percent through August but industry analysts commented that many firms had locked in demand before the US introduced fresh tariffs. Manufacturers in China have consequently had to search for other locations to manufacture products; thereby creating a chain effect in the Southeast Asia solar manufacturing sector.

Today, China sees Indonesia as its preferred solar location where the company Thornova Solar establishes a 2.5 GW factory to supply North America. While Trina Solar aims to complete the construction of a 1 GW module and cell plant by the end of year 2024, on the other side China Lesso Group has already established a 2.4 GW production facility. IPO New East Solar also reported it is planning a 3500 MW panel and cell factory in the country.

Imperial Star Solar initiated the construction work of the wafer plant in March for 4GW capacity in Laos in September 2023, and SolarSpace launched the 5GW solar cell plant. Export of solar from Laos to the US till August has reached, $48 million which in the past years has been nil for the export of solar products to US.

About Wrighter

Wrighter covers news across the global on Human Rights, Migrants Rights, and Labor Rights. Wrighter has vast experience in writing and is a doctor by profession.

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