TRINA(SH:688599) Xin Lang Cai Jing·2025-05-09 10:19Core Viewpoint - The intensifying technological and industrial competition among major global economies is prompting Western countries to implement trade restrictions and strengthen localization policies, which poses challenges for Chinese renewable energy companies seeking to expand internationally [1] Group 1: Current Situation and Strategies - The report analyzes the current status and strategic planning of Chinese renewable energy companies entering the European and American markets, highlighting the long-term defensive challenges posed by developed markets [2] - Companies will face high entry barriers and costs, while localizing production will demand higher operational capabilities, organizational structure, and cost control [2] Group 2: Recommended Strategies - The report outlines four main strategies for companies to address trade barriers and policy fluctuations: 1. Diversify production across multiple regions to mitigate systemic risks from sudden policy changes, moving from a "China+1" model to a "+N" model, while prioritizing regions with favorable policies [3] 2. Implement a dual-driven strategy focusing on technology and brand development to enhance core technologies and build a high-quality brand image, avoiding low-price competition [3] 3. Expand the depth and breadth of international operations both vertically (from manufacturing to service and consumption) and horizontally (through strategic partnerships with related companies and professional service industries) [4] 4. Optimize post-investment risk control systems by establishing a cross-border internal control framework to identify risks related to host country policies and market ecosystems, ensuring operational stability [4] Group 3: Market Insights and Case Studies - The report notes that the U.S. has introduced "reciprocal tariffs," increasing attention on trade barriers for Chinese companies, particularly in the renewable energy sector, where overseas markets, especially in the U.S. and Europe, offer higher product margins compared to the saturated domestic market [4] - KPMG highlights that asset swaps may serve as a reference model for Chinese renewable energy companies entering the U.S. market, citing the example of Trina Solar, which sold its 5 GW module factory in Texas to U.S. company FREYR for $100 million in cash and other securities [4][5] - This asset swap allowed Trina Solar to localize its production and operations, significantly reducing policy and environmental risks in the U.S. market [5] Group 4: Compliance and Strategic Planning - Chinese companies should thoroughly research the high regulatory and compliance requirements of developed markets and conduct in-depth market assessments to establish systematic strategic planning and layout [6]