Thailand moves to defend its solar energy sector from a US probe into Chinese linked firms here

[webfact]

In early April, Thailand’s Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit (inset right) wrote to the US Department of Commerce and Secretary Gina Raimondo (centre) to protest a move by the International Trade Administration to launch a probe into eight large solar panel exporters in Southeast Asia including two firms in Thailand, Canadian Solar and Trina Solar, asking them to declare their beneficial ownership and details of their production processes in Thailand. The move comes after a February decision by the Biden administration to extend Trump-era tariffs which have shielded US manufacturers from Chinese competition and suspicions raised by a US firm, Auxin Solar, that dominant Chinese firms have merely set up facilities in Southeast Asia to circumvent tariffs imposed first under the Obama administration in 2012.

 

by Joseph O' Connor

 

Current tariffs in the United States were introduced by Trump in 2018 with some having been retained after a review by the Biden administration in February this year. Currently, American firms can only supply 35% of the solar panels required in the United States as the country seeks to move towards ambitious clean energy goals by 2035 with demand increasing by over 9% a year. Politicians and even those within the industry itself argue this would not be possible without imported panels from Southeast Asian countries such as Thailand.

 

Just a week after the USA Asean summit in Washington DC, the Thai Ministry of Commerce finds itself preparing to do battle with its counterpart in the United States which at the end of March launched a probe into two Thai based firms who exported over $1 billion worth of solar panel units to America last year. A negative finding by the International Trade Administration, the US agency carrying out the investigation, could cripple the emerging sector in the kingdom with both firms involved representing an investment of over ฿9 billion. The firms, which are part of larger worldwide concerns with Chinese links, are suspected of being vehicles to circumscribe US tariffs on the sector which have been imposed since 2012.

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

 

This investigation and the profile of both firms involved offer an insightful view into Thailand’s effort to modernise its industrial base, particularly in an industry, solar-powered energy, where the kingdom has ambitious plans for the future. The situation also shows a new reality emerging across all sectors where the United States is moving to decouple its trading and operational relationship with China, a trend that has been underway for some time within this industry but which is being impeded by China’s strategic dominance.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2022/05/19/thailand-defends-solar-panel-industry-from-us-probe/

 

-- © Copyright Thai Examiner 2022-05-19

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

[garyk]

The firms, which are part of larger worldwide concerns with Chinese links, are suspected of being vehicles to circumscribe US tariffs

No, Thailand would never stoop to that.

[Danderman123]

It appears that the US is suggesting that China exports solar panels to Thailand, which then claims the panels were manufactured in Thailand.

[RandiRona]

They can try it but cant hide the links to the ways China and North Korea utilize to circumvent sanctions.....

 

[vandeventer]

17 minutes ago, Danderman123 said:

It appears that the US is suggesting that China exports solar panels to Thailand, which then claims the panels were manufactured in Thailand.

It's all again about money!

[dinsdale]

21 minutes ago, Danderman123 said:

It appears that the US is suggesting that China exports solar panels to Thailand, which then claims the panels were manufactured in Thailand.

That's not how I read it. I read as the Chinese companies have set up their facilities here to manufacture the panels. Same company different country.

[wombat]

OT...but worth noting.

This is a pic from the floods in Oz when solar electric shorts out from flooding.

 

[KhunLA]

Solar is still silly priced in the USA, panels 2x what the cost here.  Oil still has their grip, and all it does is hurt the consumer.  Even with gov't incentives, solar is price out of reach for many there.

 

[ChrisY1]

China exports solar cells to Thailand...these are then assembled into a solar panel.

I don't think Thailand manufactures the actual solar cells.

I believe this is what the US is stating...

[mikebell]

I would have thought there would be a thriving and competitive industry here, given the climate, but of course, first Thailand needs to sort out which family cartel gets the monopoly.

[hotchilli]

58 minutes ago, vandeventer said:

It's all again about money!

Cover-ups and money.

[spidermike007]

Not hard to believe the allegations. And of course Thailand would deny them. Yet, the Thais have not yet been able to prove ownership of the companies. 

 

I have no issues with the sanctions. CCP state sponsored dumping is not good for any nation except China. And Thailand in the short term, apparently. 

 

Busted! More Prayuth style moral bankruptcy exposed. 

Edited May 19, 2022 by spidermike007

[IAMHERE]

1 hour ago, wombat said:

OT...but worth noting.

This is a pic from the floods in Oz when solar electric shorts out from flooding.

 

Wonder if they knew flood waters were rising they could of turned off the solar, unplugged, or something. On the good side the fire looks contained.

[gearbox]

56 minutes ago, mikebell said:

I would have thought there would be a thriving and competitive industry here, given the climate, but of course, first Thailand needs to sort out which family cartel gets the monopoly.

The solar industry is a sort of high tech industry, with the Chinese as technology and production leader, far ahead than anyone else.

 

https://www.statista.com/chart/24687/solar-panel-global-market-shares-by-production-steps/

 

I don't see how the climate would play any role here, Australia has better climate in regards to solar but is not producing anything in meaningful quantities.

Backstabbing sanctions to cripple companies won't work here as the Chinese own the whole supply chain, only tariff can be slapped, but they are merely a noise as the Chinese are by far the biggest customer for their panels themselves.

[John Drake]

Thailand publicly bragged for two or three years how it was going to bring Chinese companies to Thailand to evade US tariffs and sanctions. Meanwhile, it would be nice if this was an American "reply" to Thailand's pro Russian and pro Chinese "neutrality." But I doubt it.

[VocalNeal]

Manufacturing in the USA has declined immensely why would they care where stuff is made? That horse bolted a long time ago.

[Eric Loh]

Silly tariff wars will only hurt the consumers. 

[mtls2005]

Vaguely reminiscent of the Toyota Scam/shakedown?

 

 

[Scott]

Troll post reported and removed.

 

[John Drake]

What this story also demonstrates is just how fragile and vulnerable are countries such as Thailand who enjoy huge trade surpluses with the US. Remember this topic from a few days ago: 

Quote

In an unexpected diplomatic move, ASEAN has decided to delay the granting of “comprehensive strategic partnership”status, or CSP, to the US until November, according to an informed source.

 

The source, who asked not be identified, said that, at the informal ASEAN foreign ministerial meeting on Wednesday night, they agreed that the US should wait until all procedural processes for the CSP have been completed. Washington has yet to apply officially and all the ASEAN members have yet to discuss and make assessments.  https://aseannow.com/topic/1259595-asean-puts-us-request-for-“comprehensive-strategic-partnership”-on-hold/

 

Had it been China, instead of the US, who had been humiliated like that, I guarantee you would see all sorts of reciprocal "procedural processes" applied to Thai/Asean goods being exported to China (and Thailand has a huge trade deficit with China, almost as big as the trade surplus it enjoys with the US). But apparently this is the story of a small US manufacturer seeking anti-dumping justice in the US, while the solar installers want to keep importing cheap China/Asian made panels. So I'm guessing the US government will go against American interests again and likely side with Thais. Go ahead, kick sand in the face of the US, the government will only go to its knees and apologize for getting in the way of foreign competitors' sand castles.

[poskat]

you know what the US is accusing the Thai companies of being is true, otherwise they would just say, sure take a look, we are clean.

 

its the same as when you ask to look at your GF's phone/chats and she doesnt want to show you, you know she is up to no good...

Edited May 19, 2022 by poskat

[VocalNeal]

25 minutes ago, John Drake said:

Had it been China, instead of the US, who had been humiliated like that,

This is why human kind is doomed? Worrying about emotional stuff like supposed humiliation and respect and the like. 

[John Drake]

13 minutes ago, VocalNeal said:

This is why human kind is doomed? Worrying about emotional stuff like supposed humiliation and respect and the like. 

No, that is why China is dominating this region and pushing the US back to Pearl Harbor. The US may not care if it was humiliated but the other players in SE Asia saw it and will now react to it as the show of weakness it is. 

Edited May 19, 2022 by John Drake

[Bluespunk]

7 hours ago, webfact said:

In early April, Thailand’s Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit (inset right) wrote to the US Department of Commerce and Secretary Gina Raimondo (centre) to protest a move by the International Trade Administration to launch a probe into eight large solar panel exporters in Southeast Asia including two firms in Thailand, Canadian Solar and Trina Solar, asking them to declare their beneficial ownership and details of their production processes in Thailand. The move comes after a February decision by the Biden administration to extend Trump-era tariffs which have shielded US manufacturers from Chinese competition and suspicions raised by a US firm, Auxin Solar, that dominant Chinese firms have merely set up facilities in Southeast Asia to circumvent tariffs imposed first under the Obama administration in 2012.

If Thailand is not helping China evade sanctions then why worry...and if they are helping China, well I'm sure they can find other markets to sell the solar panels...

[Eric Loh]

48 minutes ago, John Drake said:

What this story also demonstrates is just how fragile and vulnerable are countries such as Thailand who enjoy huge trade surpluses with the US. Remember this topic from a few days ago: 

Had it been China, instead of the US, who had been humiliated like that, I guarantee you would see all sorts of reciprocal "procedural processes" applied to Thai/Asean goods being exported to China (and Thailand has a huge trade deficit with China, almost as big as the trade surplus it enjoys with the US). But apparently this is the story of a small US manufacturer seeking anti-dumping justice in the US, while the solar installers want to keep importing cheap China/Asian made panels. So I'm guessing the US government will go against American interests again and likely side with Thais. Go ahead, kick sand in the face of the US, the government will only go to its knees and apologize for getting in the way of foreign competitors' sand castles.

Don't you think you wait until US officially apply before you get all emotional. 

[zzaa09]

4 hours ago, vandeventer said:

It's all again about money!

No. It's about imagined and deluded boggieman politics.

And certainly plays easily into the hands of the the usual anti-China crowd.

Anything will do.

Edited May 19, 2022 by zzaa09

[John Drake]

4 minutes ago, Eric Loh said:

Don't you think you wait until US officially apply before you get all emotional. 

Getting emotional is fine and well. For example, I'm absolutely thrilled with the notion that Putin has cancer and Xi has a brain aneurysm that he's stupid enough to treat with traditional Chinese medicine. I'll hop with joy the day these two dictators drop dead.

[placnx]

6 hours ago, VocalNeal said:

This is why human kind is doomed? Worrying about emotional stuff like supposed humiliation and respect and the like. 

Face - It's a primitive defense mechanism. If the facade is breached, then a boss could be exposed, and loss of power and/or wealth could ensue as higher-ups in the pyramid try to substitute someone from their coterie of underlings. This is rule BY law.

[micmichd]

On 5/19/2022 at 6:21 AM, vandeventer said:

It's all again about money!

What else should global capitalism be about?