Tongwei Co Ltd Class A 600438

China Solar Sector: Little Impact From Higher Tariff Under Section 301 on China-Made Solar Cells

We see little impact on LONGi, Tongwei, and Zhonghuan from the US action to double the tariff rate on China-made solar cells (including those assembled into modules) to 50% from 25% in 2024 under Section 301. Currently, China-made solar cells and modules are already subject to US antidumping and countervailing duties, the Section 201 tariff, and the Section 301 tariff, which could add up to over 100% tariff rate. As a result, China’s direct export of solar cells and modules to the US is minimal, accounting for less than 0.1% of its total solar cells and modules export in 2023.