After Huawei, the United States closed the door to Chinas photovoltaic industry

category:Finance
 After Huawei, the United States closed the door to Chinas photovoltaic industry


According to the four-year decreasing tax rate, the tariff rate of this year should be 20%, next year 15%, and it will expire in February 2022.

Chinas photovoltaic manufacturing capacity accounts for more than 70% of the worlds production capacity and is mainly used for export. Whether the US 201 tariff is implemented or not determines the amount of photovoltaic products that Chinese enterprises export to the US.

In December 2019, Chinas export of photovoltaic products to the United States soared after the United States exempted tariff 201 on double-sided photovoltaic modules. According to the statistics of China Photovoltaic Industry Association, in the first quarter of 2020, Chinas export of photovoltaic modules to the United States reached one point nine four Billion US dollars, a year-on-year increase of more than 42 times. In the same period, the export volume of the U.S. market accounts for the total export volume of Chinas photovoltaic modules 5.3% After ten years, the United States once again became one of the top ten exporters of photovoltaic modules in China, ranking fifth.

Even in April of the outbreak period in the United States, Chinas export of photovoltaic modules to the United States is not significantly down on a month on month basis. However, after the cancellation of the 201 tariff exemption, the export volume of Chinese photovoltaic enterprises to the United States will fall back to the freezing point.

Source: China Photovoltaic Industry Association (CPIA)

Liu Yiyang, Deputy Secretary General of China Photovoltaic Industry Association, told Caijing that the U.S. government has repeatedly adjusted the import tariff of photovoltaic products, which is determined by the overall trade environment between China and the United States. However, Chinas photovoltaic enterprises have realized the global layout, and the proportion of exports to the United States is small, and the adjustment of tariff will not have a great impact on Chinas photovoltaic industry.

According to Liu Yiyang, if the United States cancels the tariff exemption of double-sided photovoltaic modules 201, the loss is actually the interests of American investors and photovoltaic distributors. As long as the taxes and fees issued by any government department, including tariffs, do not conform to the law of market economy development, they will increase transaction costs, which will be borne by the buyer. In the end, protectionism will not protect local industries, but will affect the long-term competitiveness and vitality of the United States.

A lot of things the trump administration does are not in line with economic laws, we are not surprised. Liu Yiyang said.

The efficiency of double-sided photovoltaic modules is higher than that of single-sided modules, which is 10% - 35% higher on average. Therefore, the capacity of double-sided modules is gradually increasing. According to IHS Markit, by 2022, two-sided components will account for one third of the global component production.

Although Chinas photovoltaic enterprises are not affected by the U.S. market at present, at the beginning of the implementation of 201 tariff on photovoltaic products in the U.S. in 2017, the export volume of Chinas photovoltaic modules to the U.S. dropped significantly. According to the data of China Chamber of Commerce for mechanical and electrical industry, the export of Chinese components to the United States decreased year on year in 2017 71.2% By the first quarter of 2019, the door of Chinas PV module export to the United States was almost closed.

Trina Solar, once listed in the US stock market, became the worlds largest PV module seller in 2014 by virtue of its sales volume in the US module market. After 2017, affected by the double anti investigation and 201 tariff, the sales of Trina Solars components in the United States decreased year by year, among which, the sales in 2017 was lower than that in 2016 43.06% u3002 After Trina Solar delisted from the US stock market in March 2017, its sales in the US component market fell further in 2018. The specific data are not available. After 2019, Trina Solars sales revenue in the United States has recovered.

After the U.S. government exempted the tariff of double-sided module 201 for the first time in June 2019, Bloomberg new energy once issued a report that Chinese photovoltaic module manufacturers, such as Trina Solar, Atlas and Lungi green energy, have set up factories in Southeast Asia but not in the United Statesuff08 601012.SH uff09Enterprises such as Jingao solar will benefit from this. Jingke energy has set up a 400MW PV module plant in Jacksonville, Florida, and signed a large-scale purchase agreement with NextEra, the developer. Industry insiders believe that the restart of 201 tariff in the United States will stimulate the United States to increase the capacity of double-sided components. First solar, the largest solar module company in the United States, produces CdTe thin film modules, which is different from the mainstream photovoltaic enterprises in China in terms of technology path. Protected by U.S. 201 tariff, firstsolar is the only U.S. company in the top 10 global component market. Eight of the top 10 companies are Chinese, with the exception of South Korea Hanhua and the United States firstsolar. Source: financial network editor in charge: Zhong Qiming_ NF5619

After the U.S. government exempted the tariff of double-sided module 201 for the first time in June 2019, Bloomberg new energy once issued a report that Chinese photovoltaic module manufacturers, such as Trina Solar, Atlas and Lungi green energy, have set up factories in Southeast Asia but not in the United Statesuff08 601012.SH uff09Enterprises such as Jingao solar will benefit from this. Jingke energy has set up a 400MW PV module plant in Jacksonville, Florida, and signed a large-scale purchase agreement with NextEra, the developer.

Industry insiders believe that the restart of 201 tariff in the United States will stimulate the United States to increase the capacity of double-sided components. First solar, the largest solar module company in the United States, produces CdTe thin film modules, which is different from the mainstream photovoltaic enterprises in China in terms of technology path. Protected by U.S. 201 tariff, firstsolar is the only U.S. company in the top 10 global component market. Eight of the top 10 companies are Chinese, with the exception of South Korea Hanhua and the United States firstsolar.