Trump's ‘retrograde' policies towards Chinese solar mostly harm US, report finds
US President Donald Trump's 'retrograde policy changes' towards China's solar industry risk harming America's own clean energy sector by driving Chinese firms to redirect their investment into other markets, according to a new report.
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Chinese solar energy companies had agreed deals to build a string of factories to produce photovoltaic solar components in the United States, with over 20GW of capacity due to come online in 2025, but future projects may now be at risk due to the Trump administration's policies, the Sydney-based think tank Climate Energy Finance said in its overview of global solar manufacturing trends released on Monday.
Since returning to office, Trump has
raised tariffs on all Chinese goods, paused tax incentives introduced under the Inflation Reduction Act to encourage manufacturers to shift production to America, and frozen Department of Energy loans, leading Chinese solar firms to become cautious about investing in the US.
'Tariffs can protect domestic manufacturers but at the cost of increasing costs for domestic consumers,' said Harry Martin, an analyst at the think tank.
Instead, Chinese companies will
accelerate their expansion into Southeast Asia and the Middle East, where governments need to build up solar capacity quickly to meet their growing energy demand.
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'Policymakers in other jurisdictions should take note: imposing trade barriers on China will only redirect investment to other regions poised to benefit from its technological leadership,' Martin said.
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