Solar panel trade collided with sanction

Abstract

In the context of global climate change, shifts in geopolitics and the resulting changes in trade policies not only impact economies in traditional ways but also influence the progress of the green transition. This thesis examines the effects of Sino-U.S. trade frictions on the photovoltaic (PV) industry. The analysis integrates an industrial assessment of the PV value chain with a quantitative Difference-in-Differences (DiD) model to evaluate the impact of the Uyghur Forced Labor Prevention Act (UFLPA) on China’s PV exports. Building on the DiD model results, the study further investigates the occurrence of trade migration phenomena. The findings reveal that the UFLPA has significantly affected China’s PV exports, leading to observable trade migration patterns.