U.S. Reaches Preliminary Decision on Solar Anti-Dumping Tariffs, Chinese Makers Pleasantly Surprised

U.S. Reaches Preliminary Decision on Solar Anti-Dumping Tariffs, Chinese Makers Pleasantly Surprised

1) Status of China’s Solar Industry
According to EnergyTrend, China’s second and third-tier solar panel manufacturers are not adept at taking orders themselves – the majority rely on orders outsourced by major makers. As a precaution against the U.S. AD and CVD lawsuits, Chinese manufacturers began moving production to Taiwan at the end of 2011, negatively affecting China’s second and third-tier makers. As the anti-dumping decision will not be reached until mid-May and the market currently remains in a state of oversupply, EnergyTrend believes major manufacturers will not significantly increase order volume to second and third-tier makers before May, which means the smaller makers will continue to suffer in the short term.

2) China-Taiwan Cooperation
As demand from the North American market is currently strong, it is unlikely Chinese manufacturers will give up on such a lucrative opportunity. According to EnergyTrend research, prior to the the AD ruling in May, Chinese makers will continue to maintain the same amount of outsourcing to Taiwanese manufacturers. Furthermore, the Taiwanese government recently decided to allow Chinese vendors to invest in the Taiwanese solar industry, a move that EnergyTrend believes will deepen cooperative ties between China and Taiwan.