US Imposes Preliminary Countervailing Duties on Southeast Asian Solar Imports

On October 1, 2024, the U.S. Department of Commerce announced preliminary countervailing duty (CVD) rates on crystalline photovoltaic cells imported from Cambodia, Malaysia, Thailand, and Vietnam. The rates vary significantly among companies, reflecting the differing levels of subsidies received in these countries.

Key Findings:

• Vietnam: Some companies, such as Shengtian New Energy Vina Co., Ltd, face the highest preliminary CVD rate of 292.61%.

• Malaysia: Companies like Baojia New Energy are subject to a rate of 123.94%.

• Thailand: Trina Solar’s Thai factory has the lowest rate at 0.14%, attributed to minimal subsidies and a high degree of marketization.

• Other Chinese Manufacturers: Jinko Solar’s Malaysian facility faces a 3.47% rate, while JA Solar’s Vietnamese plant is at 2.85%.

These preliminary rates indicate that the impact on major Chinese photovoltaic companies varies, with some experiencing minimal effects. The U.S. Department of Commerce plans to announce the final CVD determinations in February 2025. Additionally, preliminary anti-dumping duty (AD) rates for these countries are yet to be released.

Industry experts suggest that companies should be more concerned about the forthcoming AD rates, as they are typically higher than CVD rates. In response to these trade measures, some Chinese photovoltaic firms are considering establishing manufacturing facilities in other regions, such as the United States and the Middle East, to mitigate potential market access challenges.