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Chinese solar stocks rise despite U.S. tariffs on polysilicon
🇵🇾 Paraguay /Economy & Trade

Chinese solar stocks rise despite U.S. tariffs on polysilicon

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • Chinese solar sector stocks rose despite new U.S. tariffs on polysilicon and its derivatives.
  • Major polysilicon producers and solar panel manufacturers saw gains on the Shanghai and Hong Kong stock exchanges.
  • Companies stated the impact of the tariffs would be minimal due to small export volumes to the U.S. and diversified supply chains.

Chinese solar industry companies saw their stock prices climb on Tuesday, defying the impact of new U.S. tariffs. The United States announced a 15% tariff on imports of polysilicon and its derivatives, key components for solar panels and semiconductors. However, major Chinese polysilicon producers and solar panel manufacturers experienced significant gains on the stock market.

By midday trading, leading polysilicon producers Tongwei in Shanghai rose 6.74%, while GCL and Xinte Energy in Hong Kong climbed 6.72% and 9.4%, respectively. The broader Chinese solar sector also followed this positive trend, with key photovoltaic panel manufacturers like Longi Green Energy (+2.2%), JA Solar (+1.44%), Jinko Solar (+2.53%), Trina Solar (+0.58%), and Xinyi Solar (+6.47%) all reporting increases.

polysilicon is simply a raw material that is used to manufacture those products, a mere "link" in their industrial chain.

— Trina Solar representativeA Trina Solar representative downplays the significance of polysilicon in their manufacturing process.

Companies within the sector expressed confidence that the U.S. tariffs would have a limited effect. Trina Solar stated that its primary business is solar modules, and polysilicon is merely a raw material, a small link in their industrial chain. They noted that their exports to the U.S. are relatively small and often go through third parties, making the tariff impact "minimal."

the impact of the new tariffs would be "minimal."

— Trina Solar representativeA Trina Solar representative assesses the likely effect of the U.S. tariffs on their business.

Jinko Solar, which derives nearly two-thirds of its sales from overseas, indicated it would "analyze" the new measures announced by President Trump. The company, like others in China, faces domestic challenges including overcapacity and price wars, prompting intervention from Beijing. Longi Green Energy, anticipating trade tensions, had already reduced its stake in a joint U.S. module factory and developed an industrial chain strategy compliant with U.S. requirements.

The White House stated the tariffs aim to reduce reliance on foreign suppliers of strategic materials and bolster U.S. manufacturing capacity. The restrictions, covering polysilicon, ingots, wafers, solar cells, and modules, are set to take effect on December 4th. Despite the U.S. move, the Chinese solar sector's resilience in the stock market suggests confidence in its global market position and diversified operations.

analyze the new measure announced by President Donald Trump.

— Jinko Solar spokespersonA Jinko Solar spokesperson states the company's intention to review the U.S. tariff announcement.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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