China's Ministry of Commerce has reignited trade tensions in the global photovoltaic industry with its latest announcement. The decision to maintain anti-dumping duties of up to 113.8% on solar-grade polysilicon imports from the United States and South Korea will significantly impact global solar supply chains.
Background of the Anti-Dumping Investigation
China first imposed anti-dumping duties on solar-grade polysilicon from the U.S. and South Korea in January 2014, with rates ranging from 2.4% to 57%. These measures were extended in 2020 for another five-year period. The current decision follows an expiry review investigation initiated in January 2025, at the request of China's domestic polysilicon industry.
Review Findings: Likelihood of Continued Dumping and Injury
The Ministry of Commerce's review concluded that terminating the anti-dumping measures would likely lead to the recurrence of dumping behavior by U.S. and Korean producers, potentially causing further harm to China's domestic industry. This determination formed the basis for extending the trade measures.
Extended Measures and Rate Adjustments
Effective January 14, 2026, the anti-dumping duties will remain in force for five additional years. The rates vary significantly among companies:
U.S. Companies:
- REC Solar Grade Silicon LLC: 57%
- Hemlock Semiconductor Corporation: 53.3%
- Other U.S. companies: 57%
Korean Companies:
- OCI Company Ltd.: 4.4%
- HANWHA SOLUTIONS CORPORATION: 8.9%
- Woongjin Polysilicon Co., Ltd.: 113.8%
- Other Korean companies: 88.7%
Product Scope and Implementation
The measures specifically target solar-grade polysilicon used for photovoltaic applications, excluding electronic-grade polysilicon for semiconductor production. Importers will pay duties calculated as a percentage of the customs-determined value of shipments.
Market Implications
This decision will likely reshape global solar supply chains:
- Increased costs for U.S. and Korean exporters to China
- Potential benefits for Chinese domestic polysilicon producers
- Possible acceleration of supply chain diversification efforts
Potential Trade Frictions
The extended measures may provoke responses from the U.S. and South Korea, potentially escalating trade tensions in the renewable energy sector. The situation underscores the delicate balance between protecting domestic industries and maintaining global trade cooperation.
Industry Adaptation Strategies
Affected companies may consider:
- Diversifying export markets beyond China
- Exploring partnerships with Chinese manufacturers
- Investing in technological improvements to offset tariff impacts
The long-term effects remain uncertain, as market dynamics, technological developments, and potential trade countermeasures could all influence the solar industry's future landscape.