Some Chinese solar companies plan to outsource manufacturing abroad in a bid to circumvent U.S. anti-dumping duties on imports of made-in-China panels. However, setting up new manufacturing hubs outside of China will push up costs and translate into higher prices for solar products, with the biggest victim being the American consumer, said Gao Jifan, Chief Executive of Trina Solar, which is based in Changzhou, Jiangsu. More Chinese companies are considering outsourcing in Malaysia and Taiwan. But Li Junfeng, President of the Chinese Renewable Energy Industries Association, warned that Chinese companies shouldn’t rely too much on that strategy because the U.S. may well adjust the conditions of its tariff ruling. “We shouldn’t rely on outsourcing,” he said. “There are many conditions in the U.S. ruling, and they could adjust them over time in favor of American producers if they notice the outsourcing trend.” Li said the key task for China is to convince the World Trade Organization (WTO) that the U.S. ruling is groundless. Li is also an energy official with the National Development and Reform Commission (NDRC), China’s top planning agency. In its anti-dumping investigation, the U.S. Commerce Department used production costs in Thailand, which produced about 0.1 GW of solar panels last year, as a proxy for costs in China, which produced 15 GW. China actually runs a trade deficit with the U.S. in the solar industry because it buys machinery equipment and raw materials, like polysilicon, from abroad to make solar products. The U.S. action could trigger countermeasures from China. In the polysilicon sector, companies have been filing petitions asking the government to impose anti-dumping tariffs against the U.S., which is second only to China in polysilicon production. “If China does impose punitive tariffs on imports, it could make U.S. producers less competitive in the largest market for polysilicon,” Charles Annis, Vice President of Solarbuzz, said, as reported by the Shanghai Daily.

Trina Solar CEO Gao Jifan is among the industrial pace setters in China. Trina’s huge factory has 14,000 employees and produces the new generation of “Honey” solar cells, with record-breaking efficiency levels. “We’ve progressed by spending a lot on research and development, but also thanks to a commitment to service and quality,” said Gao, who set up the company in 1997 after a background in chemical engineering.