Southeast Asia's solar industry boom threatened by US-China trade tensions
The future of Southeast Asia’s booming solar industry, which produces the most panels in the world after China, is being thrown into doubt as the US looks set to impose hefty tariffs on the region.
Chinese firms that set up factories there over the last decade are now being accused of skirting US import levies on their home market. At least three — including Longi Green Energy Technology Co. and Trina Solar Co. — have scaled back operations in Thailand, Vietnam and Malaysia, which, along with Cambodia, are being targeted by Washington.
The four countries account for more than 40 per cent of solar module production capacity outside of China, according to BloombergNEF, and other Chinese firms with facilities there are hunting for markets to replace the US.
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“The mood of the suppliers is to pack the lines, especially the cell lines, and move them to either Indonesia, Laos or the Middle East,” said Yana Hryshko, the head of global solar supply chain research at Wood Mackenzie Ltd. Some Chinese manufacturers are waiting to see what the tariff level will be before deciding if they need to relocate, she said.
