Chinese Solar Stocks Shrug Off New U.S. Tariffs

By Tracy Qu

Chinese solar stocks largely shrugged off new U.S. tariffs on imports of China-made solar wafers and polysilicon, key materials used in manufacturing solar cells.

Shares of Jinko Solar and GCL System Integration Technology were down less than 1% at the mid-day break in China trading, while Trina Solar, JA Solar Technology, LONGi Green Energy Technology, Risen Energy and Shanghai Aiko Solar Energy had all gained ground.

The CSI 300 index of blue-chip stocks was 0.8% higher.

In Hong Kong, Xinyi Solar added 0.6%, trailing a 1.7% gain in the benchmark Hang Seng Index.

The U.S. Trade Representative's office said Wednesday that tariffs on imports of solar wafers and polysilicon from China would rise to 50% starting Jan. 1. The rates on certain tungsten products from China will increase to 25%, it said. Tungsten plays a central role in clean energy technology like solar panels and wind turbines.

"Continued reliance on China for tungsten products leaves U.S. supply chains vulnerable and puts U.S. national security at risk," the USTR office said in a notice.

It added that higher tariffs on polysilicon and wafers would "encourage diversification away from Chinese sources," and that "while increasing tariffs may result in higher prices initially, the tariffs are necessary to allow domestic producers to compete against China's massive excess capacity, defend recent investments, and encourage more domestic manufacturing."

The move comes during President Biden's final weeks in office, and as markets anticipate that President-elect Donald Trump will implement even tougher tariffs on Chinese products upon assuming office.

Last month, the U.S. announced a new round of tariffs on solar panel imports from Malaysia, Vietnam, Cambodia and Thailand, key suppliers to the U.S. solar market.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

December 12, 2024 00:21 ET (05:21 GMT)

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