Leading U.S. Solar Manufacturers File Trade Petitions to Combat China’s Illegal & Harmful Trade Practices in Vietnam, Malaysia, Cambodia, and Thailand, Wiley Rein LLP Reports

Washington, D.C. – The American Alliance for Solar Manufacturing Trade Committee, made up of leading U.S. solar manufacturers from across the country – Convalt Energy, First Solar, Meyer Burger, Mission Solar, Qcells, REC Silicon, and Swift Solar, represented by D.C. law firm Wiley Rein LLP, today filed of a set of antidumping and countervailing duty petitions with the U.S. International Trade Commission (USITC) and the U.S. Department of Commerce to investigate potentially illegal trade practices by Cambodia, Malaysia, Thailand, and Vietnam that are injuring the U.S. solar industry. The companies subject to this investigation would be primarily Chinese-headquartered companies.    

“America’s solar manufacturing industry is on the cusp of tremendous growth that will create jobs and change the trajectory of our clean energy transition for decades to come. However, this manufacturing renaissance is being threatened by China’s industrial policy, which has led to massive subsidization in China and Southeast Asia. This is resulting in high volumes of dumping on global markets including the U.S., injuring our domestic producers,” said Tim Brightbill, co-chair of Wiley’s International Trade Practice and lead counsel to the petitioner the American Alliance for Solar Manufacturing Trade Committee. “We are seeking to enforce the rules, remedy the injury to our domestic solar industry, and signal that the U.S. will not be a dumping ground for foreign solar products.” 

This action comes less than a year after the U.S. Department of Commerce made its final determination that Chinese solar manufacturers were circumventing tariffs on solar cells and solar panels by shipping their products through Cambodia, Malaysia, Thailand, and Vietnam. However, the administration imposed a two-year moratorium on these tariffs, giving the Chinese-owned solar manufacturers in these countries time to shift their supply chains.  Companies found to be circumventing the tariffs are not expected to pay tariffs when the moratorium ends in June 2024, because their Southeast Asia-based supply chains mean they are no longer in technical violation as outlined in the circumvention decision. This new trade case is required to address the unfair trade practices by these solar manufacturers in Cambodia, Malaysia, Thailand, and Vietnam.

The alleged dumping and subsidization of products made in Southeast Asia to avoid U.S. trade rules has led to a historic glut of solar panels believed to be sold at prices below the cost of production. The International Energy Agency (IEA) reports that there is a year and a half of stockpiled panels in American warehouses. Imports into the U.S. exceeded installations in 2023 by more than 25 gigawatts, and prices have fallen by more than 50 percent in that time. This anti-competitive, market-distorting behavior undermines the level playing field necessary for U.S. solar manufacturers to compete on their own merits.  

The cases come on the heels of U.S. Treasury Secretary Janet Yellen’s recent remarks that “China’s overcapacity distorts global prices and production patterns and hurts American firms and workers.” Chinese-owned companies’ global market share in solar products is more than 80 percent. The current environment, if left unaddressed, threatens America’s ambitions of building a domestic solar manufacturing supply chain and mitigating the risk of an overreliance on Chinese solar.  

Convalt Energy, First Solar, Meyer Burger, Mission Solar, Qcells, REC Silicon, and Swift Solar are leading companies in the 34,000-worker strong solar manufacturing industry, with plans to add tens of thousands more good-paying, long-term jobs to the U.S. economy in the coming years. These collective investments are critical to hitting U.S. climate goals. Cornell University found that onshoring the solar supply chain could cut 30 percent of global solar manufacturing emissions. According to a study by the Blue Green Alliance, if all U.S. developers sourced 55 percent of their manufactured solar goods domestically, the solar manufacturing industry would support 900,000 jobs by 2035.

“Solar is the most cost-effective form of energy, even when made in the United States,” said Tim Brightbill. “There is no need to rely on artificially low-priced products that injure U.S. manufacturers to power America’s clean energy transition.” Wiley’s team representing the petitioner also includes International Trade partners Laura El-Sabaawi and Stephanie M. Bell.