US Bans Import of Solar Panels From Chinese Company Accused of Forced Labor

The Washington Post reports that this week the U.S. government "banned the import of solar panels and other goods made with materials produced by a Chinese company that it accused of using forced laborers from China's Xinjiang region, a move likely to complicate the U.S. push toward clean energy." U.S. Customs and Border Protection issued a withhold release order Thursday barring silicon-based products from the company, Hoshine Silicon, which operates from plants in Xinjiang that have been connected to coercive state labor programs targeting Uyghurs and other minorities, as The Post reported on Thursday. The order could have widespread impact on the solar industry, which is dominated by Chinese suppliers that source materials from Hoshine, the world's largest producer of metallurgical-grade silicon, a key raw material in solar panels. "Almost the complete solar industry is affected by Hoshine," said Johannes Bernreuter, a research analyst in Germany who studies the solar supply chain... By banning only Hoshine imports, CBP stopped short of targeting Xinjiang producers of another key solar ingredient, polysilicon. Those producers have also been connected to coercive labor programs targeting Uyghurs. In a note to investors, Height Securities described the ban "as a substantive but measured first shot across the bow" by the Biden administration, "which needs solar industry support" as it tries to balance rooting out forced labor in U.S. supply chains and an environmental agenda... [I]ndustry experts said enforcement could be a challenge given the complexity of the solar supply chain and Hoshine's dominance in the industry. Hoshine has produced metallurgical-grade silicon for at least eight of the world's largest polysilicon makers, according to the company's public statements and annual reports. Analysts say that together these firms account for nearly all of the world's supply of solar-grade polysilicon. The move could also undermine U.S. hopes of cooperating with China on climate change, one of few areas of potential collaboration between the two countries increasingly at loggerheads over human rights and investigating the origin of the covid-19 pandemic... Industry experts say it would be safer for U.S. agents to assume all silicon products entering the United States from China contain at least some material sourced from Hoshine, whose metallurgical-grade silicon is used in a wide range of consumer products, including electronics, cars, chemicals and sealants... The import ban was the most prominent of several measures the Biden administration took Thursday against China's solar-product suppliers. The Commerce Department also added several Chinese polysilicon producers to an export black list, which bars U.S. entities from exporting technology or other goods to the firms without first obtaining a government license.

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