China's Ministry of Commerce recently announced a proposal to restrict the export of solar power technologies, aiming to "prevent technology from getting out of control or being improperly disseminated." The ministry emphasized the need for enhanced oversight of 12 technologies involved in solar energy equipment production, given their increasing application in sensitive sectors such as aerospace and defense.

Beijing plans to ban the export of technologies for manufacturing specific items. These include certain types of ultra-thin wafers, perovskite solar cells, and multi-layer stacked (tandem) solar cells. The large-scale polysilicon production using the fluid-bed method is also targeted for a ban. Perovskite is an emerging technology with the potential to boost the efficiency of converting solar energy into electricity. Tandem cells, which combine perovskite and silicon layers, can capture a broader spectrum of sunlight. The fluid-bed technology for producing polysilicon, a key building block for solar panels, is less costly and more energy-efficient than the prevalent Siemens process.

Beyond outright bans, China also seeks to restrict, but not completely prohibit, the export of advanced solar cell manufacturing technologies like TOPCon, HJT, and XBC. The public comment period for this proposal will conclude on 15/11. Companies must register certain overseas technology transfer activities while awaiting the official update to the export control list.

Manufacturing photovoltaic modules for export in Lianyungang, Jiangsu, on 24/6/2024. Photo: AFP

This move follows preliminary discussions Chinese officials held with manufacturers in April regarding potential restrictions on advanced solar panel manufacturing technologies. According to Reuters, these export restrictions could jeopardize expansion plans for companies like Tesla in the US.

Furthermore, Beijing has already restricted the export of solar energy equipment manufacturing technology to India. Analysts suggest this action aims to maintain China's dominant position as India strives to develop domestic production capabilities and reduce reliance on Chinese supplies.

Phien An (according to Reuters)