Solar firms eye options in emerging markets

Middle East, Indonesia seen as new hubs for Chinese players in near term

Chinese solar companies are turning their attention to emerging markets in Indonesia and the Middle East as the United States intensifies trade restrictions on imported photovoltaic products from various regions, analysts said.

In early December, the US made a preliminary decision to impose antidumping tariffs of up to 271 percent on solar products from four Southeast Asian countries — Cambodia, Malaysia, Thailand and Vietnam — where many Chinese solar firms had already established production capacities. Later, Washington announced that starting Jan 1, tariffs on imported silicon wafers and polysilicon from China will soar to 50 percent.

Despite escalating trade conflicts, Tan Youru, a solar analyst at research provider BloombergNEF, said: "Apart from the US and Indian markets, most solar installations in other regions rely heavily on Chinese-manufactured products. Regions beyond the four Southeast Asian countries ... are poised to emerge as attractive new hubs for Chinese solar firms in the near term."