[Jack Aylmer]
CHINESE SOLAR PANEL MANUFACTURERS HAVE DEVELOPED A STRATEGY FOR AVOIDING U.S. TARIFFS.
SIMPLY PACK UP AND MOVE SOMEWHERE ELSE.
SOMETHING THEY’VE DONE REPEATEDLY TO CIRCUMVENT AMERICAN TRADE RESTRICTIONS.
IN VIETNAM, SOME OF THE BIGGEST CHINESE-OWNED SOLAR FACTORIES ARE CUTTING PRODUCTION AND LAYING OFF WORKERS ACCORDING TO NEW REPORTING FROM REUTERS.
LOOKING TO AVOID RECENTLY IMPOSED DUTIES AIMED AT THEM BY THE COMMERCE DEPARTMENT-
WITH RATES THAT GO AS HIGH AS NEARLY 300 PERCENT.
SO INSTEAD, THESE BEIJING BACKED SOLAR FIRMS ARE MOVING TO NEARBY INDONESIA AND LAOS.
QUICKLY BUILDING FACILITIES THAT WILL HAVE ENOUGH COMBINED PRODUCTION CAPACITY TO SUPPLY ABOUT HALF THE PANELS INSTALLED IN THE U.S. LAST YEAR.
ALL OUT OF REACH OF WASHINGTON’S TRADE PROTECTIONS.
THE U.S. GOVERNMENT INSTITUTED THESE TARIFFS BECAUSE IT BELIEVES CHINESE SOLAR COMPANIES ARE ILLEGALLY BENEFITING FROM CCP SUBSIDIES-
MAKING THEIR PRICES ARTIFICIALLY LOW, SO THEY CAN UNDERCUT MANUFACTURERS FROM OTHER NATIONS.
BUT CHINA ANTICIPATED THE U.S. WOULD GO AFTER ITS VIETNAMESE FACTORIES-
ALREADY OPERATING THEM AT A REDUCED CAPACITY WHEN THE NEW TRADE REGULATIONS CAME DOWN.
NOT BEFORE FRONTLOADING EXPORTS FROM THESE FACILITIES TO GET AHEAD OF THE INCOMING TARIFFS-
WITH SOLAR SHIPMENTS TO THE U.S. FROM VIETNAM UP ALMOST 74 PERCENT THROUGH AUGUST.
MEANWHILE, SOLAR EXPORTS FROM INDONESIA TO THE U.S. HAVE NEARLY DOUBLED TO 246 MILLION DOLLARS.
AS SOLAR EXPORTS FROM LAOS TO THE U.S., WHICH WERE NEARLY NON-EXISTENT LAST YEAR, REACHED A VALUE OF AROUND 48 MILLION DOLLARS.
CHINA IS ALREADY MAKING PLANS FOR ITS NEXT MOVE.
REACHING AN ALMOST ONE BILLION DOLLAR DEAL WITH SAUDI ARABIA TO BUILD A NEW SOLAR PLANT THERE-
AND ALSO INCREASING THEIR U.S. PRESENCE IN AN EFFORT TO TAKE ADVANTAGE OF RENEWABLE ENERGY INCENTIVES FROM THE AMERICAN GOVERNMENT.
WITH CHINESE COMPANIES BEING INVOLVED IN ABOUT ONE-FIFTH OF THE SOLAR FACTORIES ANNOUNCED SINCE THE BIDEN ADMINISTRATION ENACTED THOSE SUBSIDIES.
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