JA Solar Faces The Heat From US Forced Labour Sanctions By Saur News Bureau/ Updated On Thu, Jan 16th, 2025 Highlights : It’s not good news for JA Solar, which has overtaken Longi to become the third largest module shipper in 2024. As Protectionist Walls Come Up, China's Solar Giants Pin Hopes On Global Growth In a fresh list of 37 entities that have been found to be allegedly using forced labour in China’s Xinjiang province, a subsidiary of JA Solar finds itself banned from shipping goods to the US. The full list can be seen here. Donghai JA Solar Technology Co., a subsidiary of key Chinese solar manufacturer JA Solar, found itself on the wrong side of the Uyghur Forced Labour Prevention Act (UFLPA) entity list, which is managed by the US Department of Homeland Security (DHS).The US body accused Donghai JA Solar of sourcing polysilicon from the Xinjiang Uygur Autonomous Region (XUAR). Xinjiang is a key producing region for China’s polysilicon industry, and the US has been regularly monitoring and adding firms to its list of banned entities for using forced labour there. China, and chinese solar firms have hotly denied the accusations, but that hasn’t stopped them from suffering as they miss out on exporting to the US market, including finished modules where the US customs suspects that inputs include polysilicon from any of thr banned entities. <a href='https://secure.meilleurmedia.com/www/delivery/ck.php?n=a85f64fd&cb=INSERT_RANDOM_NUMBER_HERE' target='_blank'><img src='https://secure.meilleurmedia.com/www/delivery/avw.php?zoneid=54&cb=INSERT_RANDOM_NUMBER_HERE&n=a85f64fd' border='0' alt='advertisement' /></a> Impact- Long Delays At Customs Supply Chain Disruptions US Customs and Border Patrol (CBP) detained around 2GW of modules worth around US$700 million in 2022 on the basis of UFLPA. This figure has increased to over $1 billion in H1 of 2024. It isn;t just Chinese exporters that are impacted, as Indian exporters like Waaree Energies, that stepped up US exports to fill the gap caused by missing Chinese players have also found themselves grappling with efforts to prove that inputs for their modules were not sourced from any of the Xinjiang-based entities. <a href='https://secure.meilleurmedia.com/www/delivery/ck.php?n=a23dad63&cb=INSERT_RANDOM_NUMBER_HERE' target='_blank'><img src='https://secure.meilleurmedia.com/www/delivery/avw.php?zoneid=17&source=https%3A%2F%2Fwww.saurenergy.com&cb=INSERT_RANDOM_NUMBER_HERE&n=a23dad63&ct0=INSERT_ENCODED_CLICKURL_HERE' border='0' alt='Advertisment' /></a> Besides JA Solar, other solar entities added to the proscribed list include Inner Mongolia based Hongyuan Green Energy Co. and its subsidiary Hongyuan New Materials (Baotou) Co., and Jiangsu Meike Solar Technology Co. and its subsidiary Baotou Meike Silicon Energy Co. They are accused of sourcing key materials from Xinjiang. China’s Polysilicon Leaders Announce Production Cuts To Arrest Low Prices Also Read The US action has forced many Chinese exporters to institute stronger track and trace measures to prove their supply chains are ‘clean’. Leading firms like Jinko Solar and Trina have pushed hard to source material from subsidiaries or firms located outside Xinjiang. That is easier said than done, with Xinjiang accounting for over 50% of production in China. Along with Jiangsu province, it was pushed to be a key centre for the solar supply chain China Versus The US, Europe and Japan? Trade Battles Reach WTO Also Read Tags: Banned list, JA Solar, Sanctions, solar supply chain, UFLPA, US-china trade tensions, Uyghur Forced Labour Prevention Act, Waaree Energies, XInjiang
