US-China Trade Tensions Threaten Southeast Asia’s Solar Surge

Chinese solar firms, including Longi and Trina, are reducing operations in Southeast Asia due to potential US tariffs, which jeopardize the region’s solar industry and clean energy supply chains.

Chinese Firms Scale Back in Southeast Asia

Chinese solar manufacturing companies are reducing operations in Thailand, Malaysia, and Vietnam due to impending U.S. tariffs. Firms like Longi Green Energy and Trina Solar, which had established factories over the last decade, are now accused of evading U.S. import duties. This shift raises concerns over the future of Southeast Asia’s solar industry, which accounts for over 40% of global production capacity outside China.

Impacts of U.S. Tariffs

Recent inquiries have revealed that U.S. manufacturers are pushing for tariffs as high as 272% on solar products from Southeast Asia. In the past, the U.S. imposed tariffs on Chinese imports to protect domestic interests, leading manufacturers to relocate to the region. As a result, Chinese firms are now looking to markets beyond the U.S., with some considering moving operations to Indonesia and Laos.

Future of Solar Production

While some factories may shut down, experts believe newer facilities can survive by pivoting to alternative markets, including India and Europe. The impending U.S. tariffs could further complicate the supply chain for clean energy, complicating Washington’s decarbonization goals. Analysts highlight the political pressures in the U.S. that may drive stricter trade policies, especially as the election approaches.

Source : Southeast Asia solar boom at risk from US-China trade stress