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The United States will impose new duties on imports from some major Chinese solar panel makers after a months-long investigation found they were trying to dodge tariffs by finishing their products in Southeast Asian countries, trade officials said.

The preliminary decision was bad news for US solar project developers that rely on cheap imports to fuel their growth, but fell short of the industry’s worst fears that Washington would impose new tariffs to cover all solar shipments from the region, instead of just those from specific companies.

If finalized next year, the determination means those companies will be subject to duties on the products they make in Malaysia, Cambodia, Thailand and Vietnam – countries that now account for about 80% of U.S. panel supplies. “Commerce’s investigations have largely validated and confirmed Auxin’s allegations of Chinese cheating,” Auxin Chief Executive Mamun Rashid said in a statement.

“The only good news here is that Commerce didn’t target all imports from the subject countries,” Abigail Ross Hopper, president of solar trade group the Solar Energy Industries Association , said in an emailed statement.The industry has faced project delays for the last two years due to pandemic-related supply disruptions, land disputes, and a ban on goods made in China’s Xinjiang region over forced labor concerns.

 

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