After the Loosening of Tariff Barriers, It's Time for New Energy to Take Off

Changes in China-US Economic and Trade Relations:

On May 12, the joint statement of the China-US Geneva Economic and Trade Talks was released. The US has canceled 91% of the additional tariffs and suspended the implementation of 24% "reciprocal tariffs," while China has correspondingly canceled and suspended part of its tariffs. This brings positive impacts to the new energy industry. The export channel for Chinese photovoltaic (PV) products to the US is expected to expand, the return on investment for US PV projects may increase, and enterprises with global production capacity layouts will gain competitive advantages.

Current Status of China's New Energy Industry:

China's photovoltaic industry maintains its dominant position in the global supply chain through production capacity layouts in Southeast Asia. Due to insufficient domestic supply of solar and energy storage products in the US, it still relies on partial imports. China's wind power industry has avoided the impact of trade frictions and established operation and maintenance service systems in 120 countries worldwide. Meanwhile, the policy front continues to release reform dividends. For example, Shandong Province has announced a market-oriented reform implementation plan for new energy on-grid tariffs, adopting an institutional design of "guaranteed stock + incremental competition" to maintain industrial investment confidence and urge enterprises to pursue technological innovation.

China has continuously deepened trade cooperation with RCEP member states and countries along the "Belt and Road" initiative. The new energy industry has demonstrated strong performance in European and Southeast Asian markets. For instance, BYD's factory in Hungary has expanded its production capacity to 150,000 vehicles per year, and CATL has partnered with Vietnam's VinFast to build a battery factory.