South Korean solar company shares rise more than 8% — CNBC
In South Korea, shares of solar companies Hanwha Solutions and OCI Holdings rose by more than 8% on Wednesday amid expectations that the United States will not ease restrictions on Chinese solar products. These expectations strengthened ahead of the meeting between Donald Trump and Xi Jinping scheduled in Washington this week, CNBC reports.
US-China talks
Trade is expected to be one of the key topics of the talks between the leaders of the United States and China. Hana Securities analyst Yoon Jae Sung said that the likelihood of easing US restrictions on Chinese solar products is very low. According to him, Washington increasingly views solar energy as a strategic industry linked to national security.
The analyst believes that easing such restrictions would mean the United States stepping back from efforts to create a domestic supply chain for a strategic asset. Yoon Jae Sung named Hanwha Solutions and OCI Holdings as priority companies in the sector, assessing the likelihood of an unfavorable summit outcome for them as low.
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Tariffs and production in the US
According to the analyst, any possible tariff reductions in the talks would most likely concern non-strategic goods. He noted that in August, Trump signed Section 232 measures concerning polysilicon and its derivatives, citing national security considerations.
Yoon Jae Sung also noted that solar energy has become strategic because of electricity demand from the artificial intelligence and semiconductor industries, as well as its connection to chip supply chains, the defense sector, and space.
Hanwha Solutions' unit Qcells welcomed actions by the US Department of Commerce and US Customs and Border Protection aimed at countering what the company called illegal stockpiling of imported solar panels. Qcells said the steps should prevent circumvention of US trade policy and support domestic manufacturing. The company invested $2.5 billion in expanding solar cell and panel production in Georgia. OCI Energy, a subsidiary of OCI Holdings, began construction of a new solar facility in Texas earlier this month.
