More than 1,000 Chinese shipments of photovoltaic equipment blocked in the U.S. on suspicion of forced labor
Reuters, the British news agency, reported that more than 1,000 shipments of solar energy components, valued at hundreds of millions of dollars, have been blocked at U.S. ports under enforcement of the Uyghur Forced Labor Prevention Act (UFLPA).
China’s Xinjiang region, which is home to approximately 50 percent of the world’s supply of polysilicon, an essential material in conventional solar modules has come under scrutiny for its human rights abuses and forced labor of Uyghurs and other ethnic minorities in China. Beijing has repeatedly denied allegations of forced labor.
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The UFLPA establishes a “rebuttable presumption” that goods from the region are made with forced labor, and places the burden of proof that imported goods have no connection to forced labor on buyers. To comply with the UFLPA, companies must provide a comprehensive supply chain map, a complete list of all workers at a facility, and proof that the workers were not subjected to conditions typical of forced labor practices and are there voluntarily.
Companies such as Coca-Cola and Nike lobbied against the UFLPA, as their supply chains are deeply embedded in the Chinese economy.
U.S. Customs and Border Protection told Reuters that it has seized 1,053 shipments of solar energy equipment between June 21, when the UFLPA went into effect, and Oct. 25. Customs said none of the shipments have yet been released.
Three of Reuter’s sources were told that the shipments include solar panels and polysilicon cells, totaling 1 GW of capacity, and were made primarily by three of China’s largest PV suppliers. They are Trina Solar, JinkoSolar and Longi, which together account for about one-third of panel supplies to the United States, Reuters said. Other reports have said the impact may be even greater than that.
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In August, ROTH Capital Partners said more than 3 GW of components were being held up in customs. It estimated that between 9 and 12 GW of solar modules could be prevented from entering U.S. markets by the end of the year.
At a press conference, Chinese Foreign Ministry spokesman Zhao Lijan said the forced labor allegations are, “the lie of the century fabricated by a small group of anti-Chinese individuals.”
“The U.S. side should immediately stop the unreasonable suppression of China’s PV enterprises and release the seized solar panel components as soon as possible,” Lijan said.
Module supply problems have been an ongoing issue in the United States, exacerbated by COVID-19-related shutdowns, rising shipping costs, semiconductor supply chain problems, and enforcement of UFLPA and other trade and labor laws.
The Energy Information Administration (EIA) noted that U.S. solar developers planned to install 17.8 GW of capacity this year. However, in six months, only 4.2 GW has been commissioned. From January to June 2022, about 20 percent of planned PV capacity was delayed, according to the EIA. Reports show that solar installations were delayed by an average of 4.4 GW each month, compared with monthly average delays of 2.6 GW during the same period last year.
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At the RE+ conference in Anaheim, California, this September, Trina Solar marketing managers told pv magazine that they were confident in the high degree of traceability of their products and support for supply chains.
“We have realized that the supply chain cannot be centralized in one place and customers also want independence. Our medium-term strategy is to have a clear fragmentation of products and markets, as well as to geographically diversify our supply chain. Different markets require different supply chains,” said Helena Li, president of Trina’s global cell and module business.
In an email, JinkoSolar said it is working with Customs Border Patrol on documentation that its supplies are not tied to forced labor and is “confident that the shipments will be admitted.”
Marty Walsh, U.S. Secretary of Labor: “The world and the American people cannot tolerate the presence of products manufactured under the exploitative conditions suffered by Uighurs and other ethnic minority groups in their global supply chains.”
