SOLAR PANELS (CHINA – UNITED STATES)

United States orders of Anti-dumping & Countervailing duties on Chinese Exports dating from 2012

Context

On May 17 2012, the US Department of Commerce issued its preliminary anti-dumping determination that Crystalline Silicon Photovoltaic (CSPV) cells and modules imported from China would be subject to preliminary anti-dumping duties of 31%. This was ordered in conjunction with new countervailing duties ranging from 2.9-47%, to all imports of Chinese CSPV cells, irrespective of whether assembly had occurred internationally.

Following the preliminary investigation, subsequent rounds of protectionist measures were imposed, including:

First Round – 2012 AD & CVD Orders 

• The US Department of Commerce issued both Antidumping and Countervailing Duties orders, having determined Chinese producers were selling subject merchandise at less than fair market value while benefiting from countervailable government subsidies. The orders applied to CSPV cells, and components with integrated Chinese origin cells, including modules, laminates, panels and building-integrated materials, irrespective of whether final assembly had occurred outside of China. 

Second Round – 2014-2015 

• Following a determination that Chinese producers had circumvented the 2012 orders by sourcing CPSV cells from Taiwan and assembling finished modules within China, a second AD/CVD investigation was initiated. New orders on CPSV products from China were issued alongside a separate antidumping order targeting Taiwanese CSPV cell manufacturers.

Section 301 Orders – 2018 

• The office of US Trade Representation imposed additional tariffs of 25% pursuant to s 301 Trade Act of 1994. This was ordered following an exhaustive investigation that determined  China’s acts, policies and practices related to technology transfer, innovation and intellectual property were unreasonable, discriminatory and a burden to US commerce. 

Section 201 Protectionist Extension – 2018 & 2022 under the Trump Administration 

• Following a separate ICT investigation, the US imposed global safeguard tariffs under s 201 of the Trade Act of 1994. This was to be extended for a further four years, with a partial exclusion for bifacial solar panels. 

Impact

The 2012 AD/CVD orders had an immediate and significant impact on Chinese market share in US imports. China’s share of US solar imports declined considerably, from over 50% in 2011 to 23% by the end of 2012. By 2018, China’s share had declined to under 1% of US solar imports, as Chinese producers progressively restructured supply chains to route exports through Southeast Asian sites. 

Chinese officials and state media have argued that these antidumping duties, countervailing duty orders, and tariffs are coercive economic measures. Ministry spokesperson He Yadong claimed the US tendency to leverage investigations as “political tools”, suggested the initial 2012 outcome had been predetermined. 

Responses  

(i) Chinese government responses

China responded to the 2012 and 2015 AD/CVD orders by rerouting solar technology production to Southeast Asian sites, effectively circumventing the duties. Beijing diplomat Wang Yi justified this response, further arguing the measures “[u]nscrupulously suppress China’s normal economic, trade and technological activities, which is the most typical bullying behaviour”. 

(ii) US government and industry responses

Responding to China’s circumvention of the AD/CVD measures, in October 2024, the US placed general solar tariffs on Cambodia (8.25%), Thailand (23.06%), Malaysia (9.13%), and Vietnam (2.85%). Doing so curtailed southeast asias access to the US market, creating greater industry pressure by forcing manufacturers to shut down or scale back operations.  

Status

From an administrative review held January 27 2026, the AD and CVD measures stand and are subject to sunset reviews.

The s 301 tariffs were maintained following the four-year review of action under the Biden Administration in 2024. The s 201 safeguard tariffs initiated under the Trump Administration expired in February 2026. 

Key Takeaways

This study exemplifies the coercive ‘cat and mouse’ dynamic that inevitably ensues between dominant trade powers. The consecutive s 301, s 302 AD and CVD orders meant a substantial redirection of Chinese solar production to countries in Southeast Asia. For the US, restricting access to affordable solar products shifts the burden onto its own enterprises and consumers. Head of the China Institute for Studies in Energy Policy at Xiamen University, Lin Boqianq, said “[u]nlike solar panel manufacturing, which can be readily expanded with investment, the solar cell industry chains involve intricate technology inputs, posing challenges for rapid expansion.” By undermining the competitive nature of its domestic solar industry, the economic viability of solar projects has become compromised, leaving the US disadvantaged in the pursuit of ongoing development.

Reference List & Further Reading

Dlouhy, J.A. 2024. “US Hits Southeast Asian Solar Imports With Duties of up to 271%”. Bloomberg. November 30. Available at: https://www.bloomberg.com/news/ articles/2024-11-29/us-levies-more-duties-on-southeast-asian-solar-imports?embedded-checkout=true

HKTDC Research. 2024. “ASEAN: New US Duties Imposed on Solar Imports from Southeast Asia.” November 4. Available at: https://research.hktdc.com/en/ article/MTg0Mzk5OTcxOA#:~:text=In%20an%20announcement%20issued%20on,different%20rates%20for%20specific%20firms.

Hufbauer G, and Vieiro M. 2012. US Anti-Dumping Duties on Chinese Solar Cells: A costly Step. Peterson Institute for International Economics. Available At: https://www.piie.com/blogs/realtime-economic-issues-watch/us-anti-dumping-duties-chinese-solar-cells-costly-step

Jackson, L. Groom, N.,  Jayaram, K., Kongkunakornkul, P. & Sen, S. 2024. “US solar tariffs can’t keep up with Chinese firms.” Reuters. November 4. Available at: https://www.reuters.com/graphics/USA-CHINA/SOLAR-HISTORY/gdpzkdeqlvw/

Jackson, L., Nguyen, P., Howe, C., and Groom, N. 2024. “Chinese solar firms go where US tariffs don’t reach.” Reuters. November 5. Available at: https://www.reuters.com/ business/energy/chinese-solar-firms-ever-nimble-go-further-afield-where-us-tariffs-dont-reach-2024-11-03/

Khaliq, R.U. 2024. “’Typical bullying behaviour,’ China slams new US tariffs.” AA. Available at: https://www.aa.com.tr/en/americas/typical-bullying-behavior-china-slams-new-us-tariffs/3220314

Pickerel, K. 2026. “End of an Era: Sec. 201 Tariffs on imported Solar Panels Expire” Solar Power World. February 10 Available At: https://now.solar/2026/02/10/end-of-an-era-sec-201-tariffs-on-imported-solar-panels-expire-solar-power-world/

Ratan, I. 2026. “Does Manufacturing Matter? Foreign Investment and Local Linkages in the Solar Industry” Review of International Political Economy. March 16. Available At: https://www.tandfonline.com/doi/full/10.1080/09692290.2026.2640905

Rosenberg, E., Harrell, P. E., & Feng, A. 2020. “Trends in U.S. Coercive Economic Measures Against China. In A New Arsenal for Competition: Coercive Economic Measures in the U.S.-China Relationship” (pp. 9–21). Centre for a New American Security. http://www.jstor.org/stable/resrep24222.5

Saieed, Z. “Chinese Solar Panel Makers Close Plants, Scale back Production in Malaysia as US tariffs Bite.” The Straits Times. Available at: https://www.straitstimes.com/asia/se-asia/chinese-solar-panel-makers-close-plants-scale-back-production-in-malaysia-as-us-tariffs-bite

United States Department of Commerce. 2015 “Antidumping and Countervailing Duty Orders on Certain Crystalline Silicon Photovoltaic Products From China and Taiwan” Federal Register 80(32): 8592 February 18. Available at: https://www.govinfo.gov/content/pkg/FR-2015-02-18/pdf/2015-03183.pdf

United States Department of Commerce. 2026. “Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People’s Republic of China: Final Results of Countervailing Duty Administrative Review 2022” Federal Register 91(17) January 27. Available at: https://www.federalregister.gov/documents/2026/01/27/2026-01603/crystalline-silicon-photovoltaic-cells-whether-or-not-assembled-into-modules-from-the-peoples

Office of the United States Trade Representative. 2024. “Notice of Modification: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property and Innovation.” Federal Register 89(182) September 18. Available at: https://www.federalregister.gov/documents/2024/09/18/2024-21217/notice-of-modification-chinas-acts-policies-and-practices-related-to-technology-transfer

United States International Trade Commission. 2020. Certain Crystalline Silicon Photovoltaic Products from China and Taiwan (Publication No. 5512, Investigation Nos. 201-TA-511 and 731-TA-1246-1247, Review) Available at: https://www.usitc.gov/publications/701_731/pub5112.pdf

United States International Trade Commission. 2024. Crystalline Silicon Photovoltaic Cells and Modules From China, ( Publication No. 5546, Investigation Nos 701-TA-481 and 731-TA-1190 Second Review). Available at: https://www.usitc.gov/publications/701_731/pub5546.pdf

Wang, K. and Liu, Y. 2024. “China slams US tariffs on photovoltaic goods.” China Daily. December 6. Available at: https://www.chinadaily.com.cn/a/202412/06/ WS67524baba310f1265a1d170c.html