As the demand for solar energy deployment in the United States continues to grow, foreign firms are reaping nearly all the benefits. Solar imports in 2024 are outpacing total demand and crowding out domestic solar manufacturers.
The bipartisan legislation would prevent any company with ties to a Foreign Entity of Concern from receiving the 45X Advanced Manufacturing Tax Credit.
China makes too many things. It would be great if they made it for their home market, but they do not. Instead, they massively subsidize their manufacturing companies and overproduce for the world – their main market being the United States.
The U.S. solar manufacturing industry can play an important role in the 21st century economy. But that requires a smart, coherent trade and industrial strategy to counter China.
If Trina does not get into the FTZ in Texas, they may cancel their September 2023 planned investment. Trina is building a factory in Mexico and can eventually ship solar here duty-free under the USMCA. At least, however, we would not be subsidizing them via the IRA.
The Chinese-dominated solar industry has come under increased pressure lately, with tariffs raised on May 14, a two-year moratorium on dumping duties ending on Thursday, and the U.S. International Trade Commission voting 4-0 to initiate a new solar trade case on Friday.
The evidence put forward by U.S. solar manufacturers documenting predatory Chinese trade tactics is clear, and CPA is pleased that the Department of Commerce has chosen to initiate an investigation.