4 Chinese solar manufacturers are evading tariffs, investigation finds


An investigation has found that four Chinese solar manufacturers are evading U.S. tariffs by pushing their products through Southeast Asian countries, reports The New York Times. The companies were having products assembled in Cambodia, Thailand, Malaysia, and Vietnam and then exported to the U.S., according to the Department of Commerce.
The investigation began at the request of a small solar manufacturer in California which claimed that it was facing financial strain because of competitors using illegally sourced Chinese materials, The Washington Post reports. As a result, substantial evidence was found that China was dumping heavily subsidized materials into the American market through Southeast Asia, which doesn't face the same tariffs.
"Today's preliminary determination underscores Commerce's commitment to holding the PRC accountable for its trade-distorting actions," the Commerce Department said in a statement. These findings could potentially worsen the already-tense relationship between the U.S. and China, Bloomberg writes. The country has maintained that it has genuinely invested in Southeast Asia manufacturing and that it is not just an evasion scheme.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The investigation has caused also tension between commercial stakeholders. Companies that regularly import solar technology opposed the investigation, arguing they would not be able to keep up with demand without the imports and that it would inhibit the country's ability to meet climate goals because of higher prices. On the other hand, domestic solar manufacturers and Republicans have criticized the Biden administration for not taking a strong enough stance on China's practices.
Since the investigation began in June, the Biden administration said that any penalties would not take place until 2024, giving importers time to adjust.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Devika Rao has worked as a staff writer at The Week since 2022, covering science, the environment, climate and business. She previously worked as a policy associate for a nonprofit organization advocating for environmental action from a business perspective.
-
5 tactically sound cartoons about the leaked Signal chat
Cartoons Artists take on the clown signal, baby steps, and more
By The Week US Published
-
Roast lamb shoulder with ginger and fresh turmeric recipe
The Week Recommends Succulent and tender and falls off the bone with ease
By The Week UK Published
-
Adolescence and the toxic online world: what's the solution?
Talking Point The hit Netflix show is a window into the manosphere, red pills and incels
By The Week Staff Published
-
Pet cloning booms in China
Under The Radar As Chinese pet ownership surges, more people are paying to replicate their beloved dead cat or dog
By Chas Newkey-Burden, The Week UK Published
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US Published
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US Published
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US Published
-
Pros and cons of tariffs
Pros and Cons As Trump imposes tariffs on cars from overseas, here are the arguments for and against duties
By The Week UK Last updated
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published