China’s solar and battery companies facing high tariffs in the US and Europe are selling increased share of their products to poor countries, new analysis finds.
Chinese companies produce more solar modules and battery components than they can sell. The solar excess has lowered prices and brought more and more slimmer profits to manufacturers. analysis From Bloomberg New Energy Finance.
Even before Donald Trump took office, the US and other wealthy countries used tariffs to protect domestic businesses from the trend of cheap Chinese imports. High import costs have led Chinese companies to sell to buyers in poor countries. Between 2022 and 2024, China’s share of clean technology flowing into emerging markets increased from 24% to 43%, the analysis found.
Donald Trump is fighting now Trade wars Put even numbers against China More pressure About China’s clean technology companies.
Some Chinese manufacturers have tried to avoid US taxation over the past decade by establishing factories in Cambodia, Thailand and Vietnam, but the Trump administration is currently putting empty tariffs on imports from these countries as well. Chinese companies may move their operations to the Middle East or other parts of Asia. Bloomberg Report. The new tariffs can also give the Indian solar industry a competitive advantage, a growing player in the global market.
The dust has not settled yet, but said Antoine Vergina Jones, the lead author of the new analysis, but it is clear that the world will continue to see overloads of solar and battery for the next few years, and poorer countries will continue to increase imports of these technologies as prices drop even further. Increase in imports of clean technology, Vagneur-Jones saidwhich could be a boon from global efforts to reduce emissions.
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