logo
Chinese solar firms bank on overseas expansion to ensure survival in the face of US tariffs

Chinese solar firms bank on overseas expansion to ensure survival in the face of US tariffs

Chinese solar and energy-storage companies will continue to press ahead with their overseas expansion with or without a long-term agreement on trade tariffs, as production abroad holds the key to their long-term survival, according to executives at China's largest solar industry exhibition.
Advertisement
Although the US and China reached a 90-day truce in their ongoing tariff war in May, solar panel exports from China and Southeast Asia to the US are still subject to tariffs of as much as 3,521 per cent, with Washington citing unfair trade practices such as subsidies and dumping for the high levies.
'The industry used to say that you either go overseas or exit the game,' said Gao Jifan, chairman of Trina Solar, one of the world's largest solar-panel manufacturers, at the SNEC PV+ Photovoltaic Power Conference and Exhibition in Shanghai. 'Now, due to tariffs, simply exporting isn't enough; you must also localise production abroad.'
Chinese firms are increasingly diversifying their production base in response to the trade tensions. Currently, about 80 per cent of existing Chinese solar manufacturers' overseas capacity – solar wafers, solar cells and modules – was in Southeast Asia, according to data from S&P Global Commodity Insights.
02:31
Indonesia opens largest floating solar power plant in Southeast Asia as part of green push
Indonesia opens largest floating solar power plant in Southeast Asia as part of green push
However, nearly 80 per cent of their planned overseas capacity expansion was in the Middle East and Africa, followed by the US and Europe, it added.
Advertisement
'There is no clear indication of whether the tariffs will increase or decrease after the 90-day pause,' said He Lipeng, vice general manager of Qingdao Haier Energy Technology, the solar and energy-storage unit of Chinese electronics giant Haier Group. 'However, if tariffs were to rise to 200 per cent, [exports] would be impossible.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

4 more Hong Kong premium taxi fleets hit the streets after getting full licences
4 more Hong Kong premium taxi fleets hit the streets after getting full licences

South China Morning Post

timean hour ago

  • South China Morning Post

4 more Hong Kong premium taxi fleets hit the streets after getting full licences

Four more premium taxi service fleets hit the streets on Monday after securing full licences from authorities. Advertisement A Transport Department spokesman said it had granted full taxi fleet licences to four firms, allowing them to operate for five years. 'The four fleets officially commenced services [on Monday],' he said. The four fleets are run by Big Boss Taxi Company, CMG Fleet Management, Sino Development (International) and Tai Wo Management. Sino Development's Big Bee fleet is offering a mixed taxi service, while the other three will only operate urban cabs. Advertisement Earlier this month, SynCab received the same licence to offer premium taxi services in the city.

GSK signs US$12.5 billion licence deal with Hengrui as China rises in global pharmaceuticals
GSK signs US$12.5 billion licence deal with Hengrui as China rises in global pharmaceuticals

South China Morning Post

time2 hours ago

  • South China Morning Post

GSK signs US$12.5 billion licence deal with Hengrui as China rises in global pharmaceuticals

GlaxoSmithKline (GSK) will pay a Chinese company US$12.5 billion for exclusive global rights to develop a dozen drugs, in a landmark deal that underscores how China's research labs are snapping up market share in the global pharmaceutical and biomedical industries. The deal would give GSK the rights to develop a drug for treating chronic obstructive pulmonary disease (COPD) called HRS-9821, as well as 11 of the preclinical programmes owned by Jiangsu Hengrui Pharmaceuticals. The global rights exclude mainland China, Taiwan, Hong Kong and Macau, according to a statement to the Hong Kong stock exchange on Monday. The deal is the latest in a string of transactions between multinational firms and Chinese drug developers, which have bolstered China's share of global licensing deal value to 28 per cent in 2024 from 1 per cent in 2019. Pfizer agreed in May to pay US$1.25 billion to Shenyang-based 3SBio for the exclusive right to develop the Chinese company's drug for treating solid tumours. China's pharmaceutical out-licensing value soared to almost US$66 billion in the first six months of 2025, more than the whole of last year, according to a July 14 report from China Post Securities. For multinational companies, the deals gave them exclusive products to expand their portfolio and pipelines, while the Chinese developers saw them as opportunities to cash in on prior work and fund new projects. The GSK corporate flag next to a Chinese national flag outside its office building in Shanghai on July 12, 2013. Photo: Reuters Hengrui, established in the Jiangsu provincial city of Lianyungang in 1997, would receive a US$500 million upfront payment and charge US$12 billion to GSK upon the achievement of development, regulatory approval and sales milestones. 'The signing of the agreement will help expand the international market for HRS-9821 and multiple innovative medicines in various therapeutic areas, including oncology, respiratory, immunology and inflammation, providing high-quality treatment options for patients worldwide,' Hengrui said in a statement.

Why some Chinese students are skipping elite universities amid job market fears
Why some Chinese students are skipping elite universities amid job market fears

South China Morning Post

time3 hours ago

  • South China Morning Post

Why some Chinese students are skipping elite universities amid job market fears

After underperforming in China's national college entrance exam in June, Lu Jie was accepted into a computer science and technology programme earlier this month at a lesser-known polytechnic university in central China's Hunan province. 'Good schools had too many applicants for this major, so I had to choose a lower-ranked one to pursue it,' Lu said. The results for the exam, better known as the gaokao , have been released over the past two weeks – marking a life-changing moment for students like Lu. Now more than ever, students are opting for majors with strong job prospects over prestigious universities. A focus on immediate employability and job security is eclipsing long-term aspirations and personal interests. Driving this trend is a growing oversupply of college graduates , intensifying competition in the job market amid a challenging economic climate. Computer science has long been a highly popular major, Lu said, but the rise of artificial intelligence (AI) – widely expected to create new job opportunities – has fuelled even greater demand over the past couple of years.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store