EXCLUSIVE Renewable Energy China renewables pivot to Middle East to avoid Trump tariffs By Eva Levesque January 27, 2025, 11:35 AM Reuters/Shi Bufa/VCG China's green export volumes rose nearly 30% year on year in 2024, despite falling prices in the sector Manufacturers need to decentralise Green exports at record high Looking more at emerging markets Chinese renewables manufacturers are looking to move some operations to the Middle East to avoid higher tariffs under US president Donald Trump, a senior executive from one of the sector’s largest players has told AGBI. Vincent Wu, vice president of sales at global solar panel manufacturer Trinasolar, said the region is the right place to decentralise manufacturing to reach international markets. Wu said it was “not only about the local, Middle Eastern market which offers new opportunities due to the upcoming big projects”, but also “what we think about the US and other markets that might launch tariffs. Previously everything was manufactured in China, now we need to decentralise.” China’s “green” exports – including solar panels, lithium-ion batteries and electric vehicles – ended at new record highs in 2024. Volumes rose nearly 30 percent year on year, despite falling prices in the sector, according to the Capital Economics consultancy. Vincent Wu: ‘Previously everything was manufactured in China, now we need to decentralise’ However shrinking margins in the US and Europe – Trinasolar’s biggest markets – cut into the profits of industry leaders over this period. As a result, Chinese manufacturers reoriented their exports towards emerging markets, and Capital Economics expects this trend to continue this year. Wu said that, aside from the US, many countries are planning to launch anti-dumping policies aimed at China. In response, Chinese companies are looking “for an opportunity to find a place between East and West”. Last week Trinasolar signed an agreement to provide a 300MWh battery energy storage system at AMEA Power’s Abydos solar power plant in Egypt. It has equipped projects, including Abu Dhabi’s 2.1GW Al Dhafra solar park and Saudi Arabia’s Jubail desalination plant. In 2024 Trinasolar exported 3GW of solar modules and trackers to the Middle East, and Wu said it aims to at least double this number in 2025. Globally, the company reached 240GW of cumulative module shipments until September 2024. Acwa Power joins China’s renewable energy surge China wins $972m contract for new Saudi solar plant China-US tech tensions threaten GCC telecom strategy Last December, the US government doubled import tariffs to 50 percent on some parts of the solar panels’ supply chain, including refining polysilicon and assembling modules. US President Donald Trump said this week that he would likely impose a 10 percent tariff on China as early as February 1. During Cop28 Trinasolar announced plans to build a $5 billion solar panel manufacturing line in the UAE. However according to the latest discussions this facility may be built elsewhere in the region. “The UAE definitely will be one of the most favourable options, based on the current investigation, but we are open to a lot of other options,” said Wu.