China’s Stealthy Solar Exports Stay One Step Ahead of US Tariffs

Chinese solar firms appear to be assembling products in Indonesia and skirting US tariffs. A new crackdown under President Donald Trump may soon close this loophole in a global cat-and-mouse trade strategy.

Batam is part of Indonesia’s Batam-Bintan-Karimun Free Trade Zone.Photographer: Barry Kusuma/Getty Images

The hum of solar panel factories in this steamy island city doesn’t sound like much. But to American trade officials, it’s the muffled noise of rules being bent — or broken.

In recent months, Batam, a duty-free Indonesian enclave a short ferry ride from Singapore, has become a key waypoint in a convoluted global shuffle. Chinese solar manufacturers, facing stiff US tariffs, are quietly assembling their equipment in Indonesia and slipping their products into the American market, tariff-free.