Nov 4 (Reuters) As U.S. trade tariffs tighten on solar imports from Southeast Asia, Chinese solar companies are adapting by moving production to countries like Indonesia and Laos. Some of the largest Chinese-owned factories in Vietnam have scaled back operations, resulting in layoffs, while new production sites emerge elsewhere to bypass tariff restrictions. These shifts add up to a projected capacity sufficient to supply nearly half of the panels installed in the U.S. last year.
In the last 18 months, multiple Chinese-backed solar projects totaling 22.9 gigawatts in panel or cell capacity have launched in Indonesia and Laos, allowing Chinese firms to continue dominating the U.S. solar market. Industry observers describe the strategy as a “cat and mouse game” between China and U.S. regulators, with Chinese companies capitalizing on overseas expansion to evade tariffs. Meanwhile, new solar plants on U.S. soil, set to provide 20 gigawatts of production capacity by next year, aim to capture incentives while meeting local demand.
