Tiếng Việt
中文 (中国)
Seven solar panel manufacturing companies from the United States, South Korea, Switzerland, and Norway have recently pressured USA’s national commerce department and President Joe Biden to impose trade remedy duties on solar panel manufacturers from four Asian countries.
It’s noteworthy that not only U.S. companies directly manufacturing solar panels in this country want the duties to continue because of direct competition, but companies outside the U.S. are also requesting this.
South Korean, Swiss, and Norwegian companies have heavily invested in the solar panel production activities of U.S. companies. Hence, they have submitted applications to the U.S. Department of Commerce, while also requesting President Joe Biden to impose duties on renewable energy production equipment.
Part of this action stems from the fact that China has recently ramped up its international exports. Increased production by Chinese factories, willing to reduce product costs for export, has led to a general decrease in product prices in the market, making it difficult for foreign companies to maintain profits.
According to reputable newspapers, the Association of U.S. Solar Panel Manufacturers is considering countries deemed as China’s auxiliary factories, including Malaysia, Cambodia, Vietnam, and Thailand, for avoiding trade remedy measures.
The situation becomes more serious with some allegations suggesting that China’s actions are not only driven by surplus production (the domestic market is saturated, so products need to be exported abroad), but also purposeful actions by the Chinese government to create a global trade advantage. Consequently, there are signs that a US-China trade tension similar to before might occur as indications of Chinese investments in their auxiliary factories requesting increased solar panel production are emerging.
However, the United States also finds it challenging to take decisive action to counter China as the country is accelerating towards its green energy goals and climate change mitigation efforts. The U.S. government has repeatedly vetoed requests for duties imposed on this product since they issued a duty exemption order for two years regarding solar panel imports from four Southeast Asian countries, citing the Defense Production Act since June 2022.
Contrary to the views of manufacturers, installers, and implementers of green renewable energy projects agree with the government’s decision as it helps them reduce input costs, expedite construction schedules, and improve efficiency, even though this affects the interests of manufacturers. They argue that since the tariff exemption order was issued along with global fluctuations instigated by China, the prices of their solar panels have decreased by over 50%, while signs of subsidies and dumping from the four Southeast Asian countries are evident.
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