What’s new: Chinese solar panel manufacturers stand to benefit from the boost in exports set to follow a U.S. federal court ruling that reinstated a tariff exemption on some imported panels.
The Trump Administration in October 2020 withdrew the exclusion of double-sided — or bifacial — solar panels from import duties and increased the tariffs on equipment imports from 15% to 18%, in an attempt to protect the domestic industry against imports.
However, a U.S. Court of International Trade judge concluded in a ruling on Tuesday that the move “constituted both a clear misconstruction of the statue and action outside the president’s delegated authority.”
China’s photovoltaic industry is a global leader in terms of its size and its value for the money, Everbright Securities Co. Ltd. analysts said in a research report, noting that Chinese photovoltaic products would be indispensable to the U.S. if the country wishes to aggressively scale up its renewable energy system.
“This round of tariff adjustment will mean that in the short term, Chinese photovoltaic modules and related products may reenter the U.S. market,” the report added.
Shanghai-based JinkoSolar Holding Co. Ltd. closed up 6.7% in New York on Tuesday, while First Solar Inc., the largest U.S. solar manufacturer, tumbled 7%.
The background: China is the world’s largest producer of photovoltaic modules. According to data released (link in Chinese) by the China Photovoltaic Industry Association in June, the nation’s solar module production reached 124.6 gigawatts last year, accounting for 76% of global production.
As of the first half of this year, the top importers of solar modules from China are the Netherlands, Brazil, India, Japan and Australia, according to a Guorong Securities Co. Ltd. research report.
Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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