China's Solar Strategy: Shifting Southeast Asian Hubs Amid U.S. Tariffs

Chinese-owned solar factories in Vietnam are scaling down operations due to new U.S. tariffs. Meanwhile, new plants in Indonesia and Laos are emerging, circumventing these trade barriers. The strategic relocation is reshaping the solar industry landscape, challenging U.S. efforts to curb China's market dominance.


Devdiscourse News Desk | Updated: 04-11-2024 04:32 IST | Created: 04-11-2024 04:32 IST
China's Solar Strategy: Shifting Southeast Asian Hubs Amid U.S. Tariffs
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Chinese-owned solar manufacturers in Vietnam are facing operational reductions and workforce layoffs as a result of new U.S. tariffs targeting Southeast Asian solar exports. These measures have prompted a swift response from China as it shifts its solar manufacturing base to nations like Indonesia and Laos to evade the trade barriers.

The strategic relocation of Chinese solar firms to Indonesia and Laos has emerged as recent research reveals substantial planned capacity there. These new plants can supply nearly half of the panels installed in the U.S. last year, showcasing China's persistence in maintaining its market presence despite trade restrictions.

Industry experts refer to the situation as a "cat and mouse game," with China navigating around U.S. tariffs to safeguard its export dominance. This dynamic is reshaping the global solar industry, challenging American domestic solar production and further complicating the trade relations between China and the United States.

(With inputs from agencies.)

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