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Chinese solar firms, including Trina Solar, are establishing factories in the U.S., leveraging tax credits from the Inflation Reduction Act to expand their operations despite ongoing trade tensions and tariff issues.
Benjamin Storrow reports for POLITICO.
In short:
- Trina Solar, a major Chinese solar manufacturer, is building a Texas facility that may qualify for over $1 billion in U.S. tax subsidies, sparking debate over foreign access to American climate incentives.
- U.S. policymakers are divided, with some advocating tariffs and trade protections to shield domestic manufacturers from foreign competition, while others support foreign investment to lower costs and increase renewable energy jobs.
- The issue exposes a rift in the solar industry between manufacturers wanting to restrict imports and developers relying on affordable equipment from abroad.
Key quote:
"We bring the jobs, we bring the money, we bring the technology, we bring a lot of things to the market in order to help this market to be grown."
— Steven Zhu, head of Trina’s North American operations
Why this matters:
China's influence in U.S. solar manufacturing could help reduce emissions and create jobs but may limit efforts to build a homegrown supply chain. Balancing national security concerns with clean energy goals will be a central challenge for U.S. policy on renewables.
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