Faced With Crippling Tariffs, How Are China’s Solar Producers Planning To Survive?

The global solar industry has recently been thrust into the center of a standoff between China and the U.S. after President Trump imposed a 30% import tariff on all Chinese solar panels and washing machines coming into the United States.

For their part, China, as well as Asian nations South Korea and Taiwan are now considering filing complaints with the World Trade Organization, and requesting compensation from the U.S.

But in China, the country that prompted the solar tariff to start with, the reaction from business owners has been surprisingly moderate. Although the state response has been unequivocal, with China calling it “an abuse of trade remedy measures,” the realities on the ground seem to reflect a more adaptable atmosphere, with Chinese business owners offering a variety of solutions to keep their businesses afloat.

Nothing new

This isn’t the first time China’s solar has been stung by tariffs. Chinese solar companies have previously moved production factories to Southeast Asia to avoid anti-dumping tariffs ranging between 26% to 78% imposed by the U.S. Commerce Department in 2014 on solar panel exports.

With Pres. Trump’s new worldwide 30% solar tariff, previously tax-exempt exports from Chinese-owned Southeast Asian factories can no longer avoid absorbing the added cost and decreasing their margins, prompting many to consider their next move. Read more…