U.S. Department of Commerce (DOC) released the preliminary determination of anti-dumping (AD) duties in China and Taiwan imported PV products, arousing serious worries among the PV industries across the Taiwan Strait. PV manufacturers are now figuring out methods to eliminate the influence comes after the high tariffs.
The dumping margins imposed on Chinese manufacturers are set from 26.33% to 165.04%, while margins on Taiwanese makers are 27.59% to 44.18%. The tariff rates represent a cost gap that will become small enough for convincing Chinese makers to use PV cells produced in China instead of purchasing products from Taiwan. Nonetheless, the tariffs could play a key role in pushing Chinese companies to develop overseas markets other than the North America.
Likewise, Taiwanese manufacturers need to find out suitable and new strategies to deal with the following influence of the high tariffs. Some Taiwanese makers worry that they may confront output reduction or lay off if they are unable to find ways out immediately -- EnergyTrend evaluates that Chinese makers will rarely transfer orders to Taiwan in the future, representing a 30% industrial loss. (Analysis)
Taiwan’s government has engaged into further negotiation and appeal for protecting the domestic PV industry. Also, Dr. Sam Hong, CEO of Neo Solar Power and Chairman of Taiwan Photovoltaic Industry Association (TPIVA), encouraged that Taiwan can turn to target at the 35GW of global market aside from the 5GW U.S. market.
“Taiwanese PV companies can expand their market to regions like Europe and Japan to offset the order loss,” said Sam Hong. “To sell products to the U.S., makers can introduce different supply routes such as producing cells and modules in another region.”
He additionally pointed out that the tariffs will jeopardize U.S.’s domestic PV industry as well. Solar Energy Industrial Association (SEIA) has given the similar risk, warning that the high custom tariffs would increase costs of system installations and cause a decline to the nation’s PV market. However, some competitive PV makers seem are potential to revive as they are preparing to expand capacities.
Undoubtedly, it will undergo a period of global PV market reforming. Taiwanese PV manufacturers, who will encounter the most severe challenges, need to come up with more precise strategies to survive from the strict situation.
