US-China trade tensions threaten Southeast Asia's solar supply chain

Southeast Asia's solar development affected by US-China tariffs. (Photo: iStock)

The solar supply chain in Southeast Asia appears to be facing turbulent times as the U.S. accuses companies in the region of unfair competition and plans to raise tariffs. As a result, some manufacturers are delaying production or withdrawing operations. Meanwhile, the effectiveness of the trade barriers imposed by the Biden administration is also under intense scrutiny.

Southeast Asia’s solar panel capacity ranks second globally

According to Bloomberg New Energy Finance (BNEF), Vietnam, Thailand, Malaysia, and Cambodia are the second-largest producers of solar panels globally, following China. U.S. solar industry giants have accused these four Southeast Asian countries of dumping low-priced solar panels, prompting the U.S. government to launch an investigation. The exemption is expected to be canceled, and import tariffs are likely be between 30% and 50%。