Facing high tariffs in the U.S. and Europe, Chinese solar and battery companies have been selling a growing share of their products to poorer countries, a new analysis finds.
Chinese firms are producing more solar modules and battery components than they can sell. The glut of solar has driven down prices and left manufacturers with increasingly slim profits, according to an analysis from Bloomberg New Energy Finance.
Even before Donald Trump took office, the U.S. and other wealthy nations were using tariffs to protect domestic firms from the tide of cheap Chinese imports. High import costs have led Chinese firms to sell to buyers in poorer countries. Between 2022 and 2024, the share of Chinese clean tech flowing to emerging markets rose from 24 percent to 43 percent, the analysis found.
Now, Donald Trump is waging a trade war against China, putting even greater pressure on Chinese clean tech firms.
While some Chinese manufacturers have, over the last decade, sought to evade U.S. levies by setting up factories in Cambodia, Thailand, and Vietnam, the Trump administration is now placing sky-high tariffs on imports from these countries as well. Chinese firms may shift operations to the Middle East or other parts of Asia, Bloomberg reports. New tariffs may also give the Indian solar industry, a growing player in the global market, a competitive edge.
While the dust has yet to settle, said Antoine Vagneur-Jones, lead author of the new analysis, it is clear that the world will continue to see a glut of solar and batteries for the next several years, and that poorer countries will continue to ramp up imports of these technologies as prices fall further. Growing imports of clean tech, Vagneur-Jones said, could be a boon for global efforts to rein in emissions.
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