Chinese solar module manufacturers turn to Japan

31/03/2015 12:00 - 506 Views

Chinese solar panel manufacturers have shifted their focus to the Japanese market since the European Union and the United States imposed anti-dumping and anti-subsidy duties on their products, Shanghai's China Business News reports.

China exported solar modules worth US$16.2 billion in in 2014, with Japan absorbing 22% of the shipments and replacing the EU as the top export destination. Europe, in second place, accounted for 16%, followed by the US with 12%.

Because of the anti-dumping and anti-subsidy tariffs imposed by the EU and the US, Chinese companies have turned to Japan, eying the greater potential and higher subsidies there, the newspaper said.

An executive of a Jiangsu-based solar company also told the newspaper that sales in Europe are now weaker because the number of solar power station projects has declined since 2004 when Germany first introduced solar subsidies.

A minimum price agreement that was reached in a settlement between the EU and China also serves to limit Chinese exports to the region, the executive said in the report.

The newspaper said that 22% of China's solar product exports last year were actually stored in bonded warehouses, including US$935 million worth of products from Trina Solar and US$272 million worth from Canadian Solar, a company set up by a Chinese scientist.

According to a Chinese exporter of solar modules, if solar products are produced with imported raw materials or components and stored in bonded warehouses, the Chinese government will waive the VAT.

Although China has set a record high solar installation target of 17.8 gigawatts this year, overseas markets, especially in Asia, are more attractive to Chinese companies because of the higher subsidies and higher gross margin, analysts said. In addition, foreign clients usually offer better payment terms and rarely make late payments.

Chinese companies are also setting up factories outside of the country in an effort to evade the punitive tariffs on Chinese products, the newspaper noted. Canadian Solar has a North American production volume of 500 megawatts, Astronergy Solar, China Sunergy and ReneSola have production bases in Europe, while Hanwha SolarOne and ReneSola operate factories in other Asian countries, the newspaper said.

Source: Want China Times