Several Chinese solar panel makers seeking to expand abroad are investing in the market of neighboring Thailand in light of the increasing mark up and sharp anti-dumping duties in the Europe and United States.

In spite of China's economic slowdown, a number of local solar power enterprises are considering shifting out to Thailand. Aside from the supportive governmental rules and increasing demand, Thailand allegedly offers bigger growth opportunities and low-duty export potential.

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Factors such as decreasing prices but growing costs on rentals, labors and operations are pushing these companies to go overseas. For example, in Thailand, an office located in prime area only costs about $21 per square meter in a year, this is more than twofold Shanghai's $46.8 price tag, according to the US Colliers International.

While average duties of Chinese solar products have been increased, Taiwanese products have been lowered, according to the US Commerce Department. For instance, US import charges on China-made solar energy products were charged almost six times higher at 165 percent than Taiwan's products at 27.55 percent at the end of 2014. US duties cut down the value of Chinese exports to nearly $300 million in 2015 - shorting the profits of over 200 Chinese manufacturers.

Since 2011, Yingli Solar, one of the biggest solar panel manufacturers, has not declared profits largely because of overcapacity and attendant overproduction that resulted in the plunge of solar products' prices. The company is currently undergoing a debt reconstruction process, and based on its financial statement in the first three quarters, its debt has risen up to more than 18 billion yuan.

This month, Yangli revealed it has decided to team up with Thailand's Demeter Corp, to create multi-crystalline photovoltaic panels in Thailand. Operations will commence on the second half of this year, and products will still carry the name of Yingli Solar. 

Aside from that, the partnership will also build a 300-mW solar power plant in Rayong (southeast of Bangkok), worth $19 million. It has also negotiated with Huawei Technologies Co Ltd, a telecom and electronic giant in China, to supply solar power solutions in Thailand. 

Yingli is not the first solar panel company to seek bigger opportunities in Thailand. Last year, the trend began after the company's rivals inlcuding Trina Solar Ltd and JA Solar Holdings Co revealed their ambitions of going overseas.

Changzhou, Jiangsu-based photovoltaic module maker Trina Solar has set up a headquarter in Singapore. It has grown fast across Southeast Asia. In May last year, it allocated $160 million to construct a Thailand-based factory. Construction will begin this year with the aim of creating 700-mW solar cells that can produce power and 500-mW solar panels that can generate electricity.

Thailand is magnetizing investors for a number of reasons. Its solar panels do not invite big tariffs in the USA and Europe. Also, it has a stable investing environment as the government supports the industry. For instance, in 2015, the government unveiled ways to support its industry like making solar panels installed on residential and commercial rooftops. Lastly, the country has been using alternative energy since 2008 as the government has pledged to utilize cleaning energy by constructing big solar farms.

This expansion overseas shows Chinese firms' confidence of solar power in the global market. However, the director of Solar Energy Center of the National Institute of Clean and Low-Carbon Energy Chen Jie said solar panel makers' top priority should still be on enhancing technological innovations and not just on irrational productions.

Tagssolar panel, china, Thailand, Yangli Solar, Demeter Corp., Huawei Technologies Co. Ltd.