With a US tariff looming against Chinese solar-panel producers, companies in the Asian nation are preparing by looking for other markets.
The tariff, which for certain panels could be as high as 31 percent, was created as a way of countering products from China that American regulators had determined had been sold below cost, or “dumped.”
Bloomberg News reported that the tariff may hurt Chinese solar panel stocks, with IHS Inc. noting that shipments from China could be cut by 75 percent this year due to the anti-dumping ruling by the US Department of Commerce.
While some companies may be scrambling to find new buyers, other firms have had success securing contracts from markets outside of the US.
Forbes reported that Hanergy, a China-based firm, recently purchased the German company Solibro in order to expand its offerings and to invest in Europe.
What impact will the tariff have on the long-term investment in solar stocks?