GCL uses Vina Solar Technology

The long standing US duties on imports of solar cells and panels from China and Taiwan has not done much to encourage the production of solar products in the U.S. In fact, what it has done is brought huge riches to South East Asian countries which have become major manufacturing bases for large China based solar companies. Not only have Tier 1 solar panel players in China established based in Thailand, Malaysia and Vietnam, but some of these companies are also partnering with local companies to be used as OEM suppliers. The latest large Chinese solar panel giant to use SE Asia as a conduit to US exports is GCL Solar Panels. GCL System Integration Technology (GCLS) which is one of the major subsidies of GCL making solar panels recently signed an agreement with Vietnam based solar cell producer Vina Solar Technology. As part of this agreement, GCL will invest more than $30 million in the company to expand capacity by 300 MW which it will use to export to Europe and USA.

Recently, the European Union in all its foolishness decided to extend its minimum import price (MIP) regulations against Chinese solar imports. The price is much higher than what is being quoted in the international markets and most of the Chinese companies have decided not to follow these regulations. Instead most of them are happy to pay the import duties imposed by EU. Many of the largest Chinese companies are able to circumvent these duties through their large manufacturing bases in other countries these days making the EU efforts useless.

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Taiwan had earlier gained from the U.S. and European fighting with China on solar imports, now it is the turn of the SE Asian countries to gain from the wars between the big boys. The only loser from this fight is the U.S. and European consumer who is paying the higher price for solar products as the companies and the countries are losing very little. The whole purpose for which these trade wars had started have itself become moot with solar panel manufacturing almost defunct in the western countries just like other activities such as textile and shoe manufacturing.