A series of policies from Europe and the US have been introduced; what does this mean for the future of China's photovoltaic industry?

Against the backdrop of accelerating global energy transition, the photovoltaic industry, as a crucial component of clean energy, is facing unprecedented development opportunities. However, recent policy adjustments by the US and EU targeting the photovoltaic industry have brought new challenges to the development of Chinese photovoltaic companies.

On April 21, the US Department of Commerce issued an announcement, making an affirmative final determination on the anti-dumping and countervailing duty investigations of crystalline silicon photovoltaic cells (whether or not assembled into modules) originating in Cambodia, Malaysia, Thailand, and Vietnam. The anti-dumping duties on photovoltaic products from these four Southeast Asian countries range from 0% to 271.28%, and the countervailing duties range from 14.64% to 3403.96%. On May 20, the US International Trade Commission (ITC) formally voted to approve a resolution imposing punitive tariffs on photovoltaic products from the four Southeast Asian countries. This not only impacts the Southeast Asian photovoltaic industry but will also affect the overseas layout of Chinese photovoltaic companies.

Meanwhile, on May 23, the European Commission formally adopted the secondary legislation implementing details of the Net-Zero Industry Act (NZIA). This act reshapes the domestic clean energy industry chain through a series of mandatory measures, clearly stipulating that by 2026, EU member states must ensure the annual deployment needs of renewable energy equipment such as photovoltaic modules, batteries, and heat pumps, with a fixed proportion coming from domestic manufacturing. This policy aims to reduce the EU's reliance on imported photovoltaic modules and enhance the resilience of its domestic supply chain, but it also raises the threshold for Chinese photovoltaic companies entering the EU market.

In the face of policy changes in the US and EU, the current situation of Chinese photovoltaic companies having already established a presence in multiple overseas markets demonstrates their strong market adaptability and forward-looking vision.

The Middle East region is rich in solar resources and has a strong demand for energy transition. Chinese photovoltaic companies, leveraging their technological advantages and product competitiveness, are actively participating in large-scale photovoltaic projects there. For example, in the 10 GW photovoltaic hydrogen production integrated project in NEOM (the new future city in Saudi Arabia), Longi and JA Solar supplied high-efficiency modules with a double-sided rate ≥85%. These modules not only feature excellent weather resistance design, capable of withstanding sandstorms and large diurnal temperature variations, but also significantly improve power generation efficiency. In addition, Chinese companies also supplied 12 GW of 210 large-size TOPCon modules for the fourth phase of the Mohammed bin Zayed Solar Park project in the UAE, further consolidating their position in the Middle East market.

In the Southeast Asian market, Chinese photovoltaic companies have achieved counter-cyclical growth by optimizing their production capacity layout. "For example, Indonesia, with its advantages of lower labor costs and equipment export costs, has become an important investment destination for Chinese photovoltaic companies. Companies like Trina Solar have built integrated battery and module bases in Indonesia, and capacity utilization rates have steadily improved." This is according to Zhang Sen, secretary-general of the Solar Photovoltaic Products Branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. Overseas production capacity layout has laid a solid foundation for the long-term development of Chinese photovoltaic companies in the Southeast Asian market.

Latin America is rich in solar energy resources and has enormous market potential. Chinese photovoltaic companies are increasing their investment in the region. In Brazil, the company said to be investing $300 million to build a large-scale photovoltaic module manufacturing plant, and its products are widely used in various photovoltaic projects in Brazil. In Mexico, Tongwei Co., Ltd. invested $400 million to build a comprehensive project covering silicon material processing and cell production. Leveraging local resource advantages and market radiation capabilities, this project further expands the market share of Chinese photovoltaic companies in Latin America. Zhang Sen believes that by investing in and building factories in Latin America, Chinese photovoltaic companies not only introduce advanced technologies and products to the region but also promote the rapid development of the local photovoltaic industry, achieving mutual benefit and win-win results.

The African continent also has abundant solar energy resources, but for a long time, its energy infrastructure has been weak, and electricity supply has been insufficient. With the increasing attention paid by African countries to energy issues and the support of the international community, Africa is gradually becoming a new hotbed for the development of the photovoltaic industry. Chinese photovoltaic companies are actively participating in Africa's energy construction, with said to be one of them. This company invested $200 million in building a photovoltaic module manufacturing plant in Ethiopia, providing the region with a large number of high-quality and cost-effective photovoltaic products. In South Africa, said to be investing hundreds of millions of dollars in building large-scale photovoltaic power plants and related supporting facilities, making a positive contribution to optimizing South Africa's energy supply structure. Through these projects, Chinese photovoltaic companies not only meet Africa's urgent need for clean energy but also provide strong support for Africa's sustainable development.