U.S. crackdown on Chinese forced labor hits solar industry

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U.S. officials have seized around $1.3 billion worth of imports since a forced labor law aimed at Chinese manufacturers went into effect last June. That's had the corresponding effect of crippling the U.S. solar market and freezing its supply chain.

Customs officials have since confirmed to Axios that import detentions connected to the law surged 63% from October through early January of this year, with 2,600 seizures worth $806 million.

The majority of the detained imports were solar panels, a critical piece of solar infrastructure that mostly comes from Xinjiang and other parts of China. That brings the total amount of seized goods to around $1.3 billion as a result of the UFLPA. The majority were solar panels — with cotton, tomatoes and other imports included as well.: The law has brought the flow of solar imports into the U.S. to a near standstill, and ground large-scale projects to a halt."I have seen developers and investors revising solar module costs up by 30-40%," Xu Chen, a senior director at FTI Consulting, tells Axios.

But the official added that he expects the number of seizures to drop relatively soon, as the industry begins to figure out what it can ship, and what violates the law. "As more importers learn more about the UFLPA, we should be able to see a drop in the numbers," said the official, who did not want to be named because he was not authorized to speak on the record.

 

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