Canadian Solar, one of the industry’s most exposed players to US-China tensions, is expanding the role of its Hong Kong operations as it reshapes its global business to weather a deepening downturn and rising geopolitical pressure, positioning the city as a hub for financing, talent and technology development, according to its board director.

The Nasdaq-listed group, founded in 2001 by Chinese entrepreneur Shawn Qu, has been grappling with increasingly stringent compliance requirements from Washington.

With the US still its most profitable market as of 2025, Canadian Solar ring-fenced its operations last year into a separate joint venture, CS PowerTech, while localising supply chains. The move, backed by manufacturing plants in Texas and Indiana, is aimed at meeting tighter trade rules and preserving market access.

But the restructuring signals a broader pivot. As geopolitical pressures persist and the industry downturn deepens, Canadian Solar said it was elevating Hong Kong as a base to diversify beyond the US and move into higher-value segments.

“Hong Kong is more suitable for us to further develop non-US international markets,” said Yan Zhuang, a board director at Canadian Solar and president of CSI Solar, a Suzhou-headquartered unit that was spun off and listed on Shanghai’s Star Market in 2023, and accounts for about 85 per cent of the group’s total assets.

Hong Kong already serves as the group’s international coordination centre, with many overseas entities registered in the city. Canadian Solar now planned to deepen its use of Hong Kong for financing, contract execution and international business support, while gradually adding functions such as data operations and selected research capabilities, Zhuang said.