Given that companies rely so heavily on China for vital “green” components, the cost of compliance or export levies would ripple through their production processes, driving up input costs and hammering their margins.
Drastic cost increases will make it extremely difficult for international solar companies outside of China to manufacture and sell panels at competitive prices. In fact, global production could plummet, leaving China as the only market for solar panels.
This leaves the top ten international producers by global market share vulnerable. These include U.S. producer First Solar Inc. (Nasdaq: FSLR), Japan’s Sharp Corp. (OTC: SHCAY) andSouth Korea’s Hanwha Solarone Co. (Nasdaq: HSOL).
In contrast, the alternative energy stocks of Chinese companies like JinkoSolar Holding Co. (NYSE: JKS), Yingli Green Energy (NYSE: YGE), and Trina Solar Limited (NYSE: TSL) stand to benefit from the actions taken by their government.
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