(JW Insights) Aug 24 -- Chinese companies exporting solar cells and modules to the United States through Southeast Asia are facing a "tariff bomb" from the U.S. Department of Commerce, reported Business Korea on August 22.

On August 18, the U.S. Department of Commerce concluded that five Chinese companies, including BYD Hong Kong (Cambodian subsidiary), New East Solar (Cambodian subsidiary), Canadian Solar (Thai subsidiary), Trina Solar (Thai subsidiary), and Vina Solar (Vietnamese subsidiary), were making so-called "circumventive exports" through Southeast Asia. These companies had set up factories in Southeast Asia, not for core processes but for partial processing, to evade sanctions against China and subsequently export solar cells and modules to the U.S.

Starting from June next year, the Department plans to impose anti-dumping and countervailing duties of up to 254% on products exported by these companies, reported Business Korea.

However, Hanwha Q CELLS and Jinko Solar's Malaysian subsidiary, along with Vietnam's Boviet Solar, have been exempted from these tariffs. It's believed these firms were not established to avoid tariffs but to perform core manufacturing functions.

The Commerce Department also mentioned they had identified some companies engaging in circumventive exports beyond the initial eight under investigation. This implies there might be further findings of other Chinese companies in the future, reported Business Korea.

Demand for solar products from Hanwha Q CELLS, which has a factory in the U.S., is also anticipated to rise. U.S. solar research institute PVEL stated that "requests for solar module testing from South Korean and Indian companies are increasing."

(Li PP)