China's solar sector remains red as the trade war causes problems

China's solar producers reported losses in the last week, as President Donald Trump's Trade War put additional pressure on demand. This was an industry that already faced low prices and tariffs for exports to America.

Longi Green Energy, JinkoSolar and other top producers reported a combined net loss of 1.4 bn yuan (193 million dollars) in the first quarter. Losses for competitors JA Solar, Trina Solar, and others totaled 1.6 bn yuan, 1.3 mn yuan, and 1.6 mn yuan respectively.

Longi, who also reported a loss of 8.6 billion Yuan in 2024, informed analysts on a conference call that the demand for solar products is expected to remain flat in 2025.

All segments of the solar industry were under pressure during the reporting period. Prices in the supply chain were low, and overseas trade policies were impacting the demand.

Sales of solar products including silicon wafers, solar cells, and modules fell by 12.68% year-on-year in the third quarter to 19,130 Megawatts.

Jinko reported that it saw its fastest growth in Asia Pacific and Africa, though China, the U.S., and Europe remain the biggest markets.

Even before Trump’s trade war in which he imposed 145% tariffs for imports of Chinese products, Chinese solar exports faced tariffs in the U.S.

Chinese manufacturers set up production in a number of countries in Southeast Asia, which were later targeted by U.S. companies with trade suits alleging that they were flooding markets with cheap goods.

Last week, in response to one such case, the U.S. finalised tariffs as high as 3,500% for solar products manufactured by Chinese solar manufacturers who have factories in Malaysia. Cambodia, Thailand, and Vietnam.

In its investor call, Jinko said that the U.S. accounted for about 5% (or $5 million) of sales during the third quarter.

Jinko informed investors that tariffs made it prohibitively costly to sell battery storage system to the U.S.

CSI Solar (NASDAQ: CSI), a subsidiary of Canadian Solar in China, is negotiating with clients and suppliers for a fair tariff cost-sharing arrangement. It said this on Monday, when it filed a report with the U.S. Securities and Exchange Commission.

CSI also said that it was preparing to negotiate with the U.S. and China, and to adjust tariffs in a more reasonable range. It is also pursuing exemptions from tariffs on certain products. Reporting by Colleen Waye Editing Mark Potter

(source: Reuters)