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Indonesia emerges as new hub for Chinese solar firms amid Trump’s tariffs on Southeast Asia
Indonesia is now appealing to companies seeking to relocate operations due to high US tariffs on Chinese solar firms in Southeast Asia
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Sky-high US tariffs on Chinese solar firms with factories in Vietnam, Malaysia, Thailand and Cambodia are prompting some of these companies to consider relocating to Indonesia – a rare bright spot in the region that analysts say may not remain shielded for long.
US President Donald Trump’s administration in late April imposed punitive duties of up to 3,500 per cent on solar components exported from the four Southeast Asian countries, targeting Chinese firms accused of routing shipments through the region to sidestep previous trade restrictions.
Indonesia and Laos, which the US tariffs have not hit, recently attracted new investments from Chinese-owned solar firms seeking to bypass American trade barriers.
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Chinese firms featured prominently at Solartech Indonesia 2025, a trade exhibition for solar and photovoltaic energy held in Jakarta last week, including solar panel manufacturers Jinko Solar and Trina Solar.
This comes after at least four new solar projects linked to Chinese companies have begun operating in Indonesia and Laos, with two more in development, according to Reuters. Together, they aim to produce 22.9 gigawatts of solar capacity, primarily destined for the United States.
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Among the major players are Thornova Solar, the US-based subsidiary of China’s Yuncheng Solar Technology; New East Solar, another China-linked firm; and Lesso Group, a Chinese conglomerate best known for manufacturing industrial materials.
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