The future of Southeast Asia's booming solar industry, which produces the world's most panels, is under threat after China is in doubt after the United States appeared poised to impose high tariffs on the region.
A Chinese-owned solar industry firm built in Southeast Asia over the past decade has been accused of defrauding US import levies in the market.
At least three companies including Longi Green Energy Technology Co and Trina Solar Co have reduced their operations in Thailand, Vietnam, Cambodia and Malaysia which are now targets of Washington.
Those four countries account for more than 40% of solar module production capacity outside of China.
Head of Mackenzie's Global Solar Supply Chain Research, Yana Hryshko said supplier mode is currently updating lines especially cells by moving them to Indonesia, Laos or the Middle East.
Some Chinese manufacturers are waiting to see the level of tariffs before deciding whether they should move or not.
The uncertainty underscores broader turmoil in the clean energy supply chain as the US, Europe and others seek to wrest market share from China, which dominates production of solar equipment and electric vehicle batteries.
Chinese solar firms are also grappling with a worsening glut of local companies that have seen several smaller market players suffer losses.
However, Chinese and Malaysian regulators reported that Longi stopped five production lines in Vietnam and began winding down its operations in Malaysia.
Trina also plans to close some capacity in the region and Jinko Solar Co wants to close a factory in Malaysia.
