China Solar Firms to Speed Up Global Push Amid Tariff Truce
(Bloomberg) -- Chinese solar companies will continue their expansion into emerging overseas markets during a 90-day tariff truce between the US and China that brings a more stable trade environment, company executives said at online investor briefings.
“The easing of tariff policies between China and the US is conducive to providing a relatively stable overseas trade environment for the solar and energy storage sector,” said Li Xiande, chairman of Jinko Solar Co., at the briefing hosted by Shanghai Stock Exchange this week. The company will use the period to pursue “diversification of global supply chain,” he said.
Even before the latest trade war, Chinese solar products bound for the US had faced tariffs for more than a decade. Manufacturers responded by setting up operations in countries that weren’t affected by the duties at the time. But US President Donald Trump’s sweeping tariffs policies, including duties on solar imports from four Southeast Asian countries, mean further relocation will be necessary.
Jinko aims to enhance its capacity in the Middle East with a 10-gigawatt solar cell and module project in Saudi Arabia that it’s jointly developing with the kingdom’s Public Investment Fund and Vision Industries, according to Li. The company saw almost 60% of its products go overseas in 2024, and emerging markets in the Middle East, Africa and Southeast Asia grew fast, he said.
“The reciprocal tariffs between the US and China would have relatively small impact as there is basically no direct solar export from China to the US with the existing duties,” said Zhuang Yan, chief executive officer of CSI Solar Co., at the same briefing. The affiliate of Nasdaq-listed Canadian Solar Inc. will “make good use” of its capacity in Southeast Asia and other regions during the 90-day reprieve, while moving some production and procurement to regions with lower tariff costs, he said.
CSI is also looking at the Middle East, but Zhuang said the company will prioritize other overseas markets amid fierce competition there. The firm will continue its 5-gigawatt solar module project in the US, which is expected to reach designed capacity in the second half of this year and the full-year output is estimated at more than 3 gigawatts this year, the company’s board secretary Xu Xiaoming said at the briefing.
Tongwei Co. currently has no plans to build production capacity overseas, although it has been exploring sites in recent years in emerging markets in the Middle East, Asia and Latin America, Vice Chairman Yan Hu said at a separate briefing on Friday.
Key Data Points:
- Wafer prices fell between 1.8% and 5.9% in the week through May 15, due to weak demand
- Prices for most polysilicon products fell in the week to May 14, dragged by high inventory and price decline of downstream products
- P-type polysilicon dropped the most by 3.1%
What Happened This Week:
- Five Chinese companies are expected to invest a total of $1.75 billion in Ethiopia, mainly in solar-cell manufacturing and mineral exploration, according to Finance Minister Ahmed Shide
- CSI Solar will spend $250 million on a plant producing solar modules and energy-storage products
- Hainan Drinda New Energy Technology Co. and Toyo Solar Manufacturing One Member Plc also have solar manufacturing projects in the works
- LONGi Green Energy Technology Co. said it signed a series of agreements to supply over 580 megawatts of modules that use back contact technology to several power projects in southern Europe
- Qingdao Gaoce Technology Co., which holds debt in Jiangsu Runergy New Energy Technology Co., said it will convert 100 million yuan ($13.9 million) of debt into a 1.08% stake in the latter
(Updates with Tongwei comments in seventh paragraph.)
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