BUSINESS

China’s Solar Firms Rekindle Strategy as U.S. Prepares Tariff Tsunami on Southeast Asia

Published: Apr. 23, 2025 4:38 a.m. GMT+8

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A solar farm in Thailand. Photo: VCG

United States trade officials have finalized plans to impose tariffs as high as 3,500% on solar panel imports from four Southeast Asian countries, in a move aimed at curbing alleged subsidies and dumping practices linked to Chinese manufacturers using the region as an export base.

The steep tariffs, targeting companies in Cambodia, Thailand, Malaysia and Vietnam, come after a year-long investigation after several U.S. solar equipment producers petitioned the Biden administration to protect American manufacturing against cheap imports.

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The U.S. plans tariffs up to 3,500% on solar panels from Cambodia, Thailand, Malaysia, and Vietnam after finding Chinese manufacturers used these countries to avoid earlier duties; some firms face over 3,500% tariffs.
Southeast Asia’s share of U.S. solar imports fell from 82% to 55% in 2024; U.S. solar module capacity grew from 7GW (2022) to over 50GW, but imports of about 30GW are still needed in 2025.
Chinese solar firms are investing in U.S., Middle East, and Africa to adapt, but face political and regulatory risks with shifting U.S. policies.

AI generated, for reference only

Who’s Who

Solar Long PV Tech Co. Ltd.: Solar Long PV Tech Co. Ltd., a Cambodian company, is among those facing the highest U.S. tariffs—3,521%—on solar panel imports. This steep tariff was imposed due to what U.S. authorities described as a lack of cooperation with the trade investigation targeting alleged subsidies and dumping practices tied to Chinese manufacturers using Southeast Asia as an export base.

Hounen Solar: Hounen Solar, a Chinese-backed company operating in Cambodia, is among those facing the highest U.S. tariffs on solar panel imports—3,521%. U.S. authorities cited a lack of cooperation from Hounen Solar during their investigation as the reason for imposing the steep duty.

JinkoSolar Co. Ltd.: JinkoSolar Co. Ltd., a major Chinese solar manufacturer, faces combined U.S. tariffs of just over 40% on products made in Malaysia. In response to new U.S. import restrictions, JinkoSolar has shifted strategy, halting production in Malaysia and expanding its U.S. presence—its Florida plant, now with 2GW annual capacity, recently qualified for Inflation Reduction Act tax credits, making it the first Chinese-funded facility to do so.

Trina Solar Co. Ltd.: Trina Solar Co. Ltd., a major Chinese solar manufacturer, faces U.S. tariffs of 375.19% on solar products exported from its Thailand operations. Despite these barriers, Trina has invested in U.S. manufacturing and is expanding globally, building new production capacity in the United Arab Emirates and exploring other international locations to diversify its manufacturing base amid rising trade restrictions.

LONGi Green Energy Technology Co. Ltd.: LONGi Green Energy Technology Co. Ltd. is a major Chinese solar manufacturer that shifted production to Southeast Asia to circumvent U.S. tariffs. In response to new U.S. tariffs, LONGi began producing solar modules at a 5GW plant in the United States last year. The company is also diversifying globally, with recent investments in manufacturing facilities outside of Southeast Asia, such as in Egypt, Oman, and other regions.

Canadian Solar: According to the article, Canadian Solar is one of the major companies that have made investments in the United States, joining other leading solar manufacturers such as LONGi and Trina Solar in expanding their U.S. operations amidst increasing tariffs and shifting trade policies targeting imports from Southeast Asia.

JA Solar Technology Co. Ltd.: According to the article, JA Solar Technology Co. Ltd. is responding to pressures in Southeast Asia and the U.S. by diversifying its manufacturing. Late last year, the company unveiled plans to build new factories in Egypt and Oman, expanding its global production footprint beyond traditional hubs.

TCL Zhonghuan Renewable Energy Technology Co. Ltd.: According to the article, TCL Zhonghuan Renewable Energy Technology Co. Ltd. is diversifying its global manufacturing operations by investing in Saudi Arabia. This move comes as Chinese solar firms face increased tariffs and pressure in Southeast Asia and potential investment hurdles in the U.S.

Penang Factory: According to the article, Jinko Solar’s factory in Penang, Malaysia, reportedly halted production or closed as Chinese solar companies began cutting back on Southeast Asian operations in anticipation of high U.S. tariffs. This change reflects a shift in business strategy due to evolving trade restrictions.

Florida Plant: JinkoSolar’s plant in Florida has an annual capacity of 400 megawatts and has qualified for tax credits under the Inflation Reduction Act, making it the first Chinese-funded company to benefit from this incentive. The plant recently added a new capacity of 2GW.

AI generated, for reference only