U.S. Bans Import of Solar Panels from China's Xinjiang Region

The U.S. is taking further punitive economic measures against The People’s Republic. President Biden has barred the import of solar products made in China’s Xinjiang region, where the nation’s ethnic Uyghur Muslim minority suffer alleged human rights abuses.

This isn’t the first time the U.S. has used commerce (and the threat of withholding it) to protest the treatment of China’s Uyghur Muslim minority. Under former President Trump, the U.S. Customs and Border Protection in January issued a withhold release order against cotton and tomato products made in Xinjiang.

For their part, China denies any such mistreatment, but the U.S. feels otherwise, and as legal basis, they point to Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307), which, according to U.S. Customs and Border Protection, prohibits the importation of merchandise mined, produced or manufactured, wholly or in part, in any foreign country by forced or indentured labor – including forced child labor.

And the products of the Xinjiang region are critical for solar panel production. According to Bloomberg news, approximately half the global supply of polysilicon hails from that particular area.  

Back in January, the White House issued a statement affirming that “The United States believes that state-sponsored forced labor in Xinjiang is both an affront to human dignity and an example of the PRC’s unfair economic practices.” And judging by the newest sanctions, the feds haven’t changed their stance.

This also isn’t the first time China sanctions have directly compromised the solar industry. President Trump’s comprehensive China tariffs placed enormous taxes on solar panels (amongst other goods), and this had a tremendous impact on U.S. solar panel installation (which relies on cheap parts from China for up to 80% of its supply).

As a result of the announcement, Daqo New Energy fell 2% and JinkoSolar Holding Co. dropped 2.4% in trading, while Arizona’s First Solar Inc. went up by 0.8%.

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