Lin Boqiang, the head of the China Institute for Studies in Energy Policy at Xiamen University, emphasized that China’s PV (photovoltaic) industry holds a considerable edge in technology, pricing, and post-sales service, owing to extensive development efforts and technological advancements over the years. Concerns among US competitors persist as they fear China’s PV sector may swiftly assert dominance in the global market, potentially limiting their market presence
A fresh US investigation is targeting solar products produced by Chinese companies’ overseas branches or joint ventures, amid accusations that imports from Cambodia, Malaysia, Thailand, and Vietnam are unfairly subsidized and priced at a low rate. Prompted by formal requests from several US solar product manufacturers, who argue that tariffs are necessary for such imports, the probe is believed to be directed at Chinese imports due to the increasing establishment of production facilities by Chinese solar companies in Southeast Asia. However, with China expanding its export markets and the US solar industry heavily dependent on imports from Southeast Asia, any potential tariffs are expected to impact consumers in the United States more than producers. Experts warn that such tariffs would likely result in increased costs for US solar project developers and consumers, amplifying the burden on the latter.
Southeast Asia serves as a crucial source of imports for the US. The imposition of tariffs would disproportionately affect the US, impacting both solar project developers and consumers who may face higher electricity costs amidst the country’s efforts to decarbonize its power sector, Lin noted.
In 2023, the US imported PV cells primarily from Malaysia, South Korea, and Vietnam, totaling $460 million from Southeast Asian countries alone, representing 70% of total PV cell imports. Additionally, PV module imports from Southeast Asian countries in 2023 amounted to $12.51 billion, constituting 82.7% of the total import value, as per data from the China Chamber of Commerce for Import and Export of Machinery and Electric Products.
Finding substitutes for solar products imported from Southeast Asia or China is challenging for the US due to its relatively weak upstream industrial chain. Seeking alternative producers from countries like Mexico and India, the investigation and potential tariffs are seen as tactics to buy time, according to Lin.
Globally, many economies, including the US, provide financial support to early-stage solar companies. However, concerns persist regarding certain Chinese producers circumventing anti-dumping and countervailing duties by processing solar products through Southeast Asian countries.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, emphasized that the imposition of tariffs would not only affect Chinese companies but also harm local firms and international joint ventures exporting solar products to the US.
