KUALA LUMPUR, July 6 — Malaysia opposed an investment application from Trina Solar Ltd to build a manufacturing plant in the country, the Malaysian Reserve reported.

The nation is trying to protect its solar industry amid concerns that some Chinese companies are using the country as a transshipment hub to avoid US and European Union sanctions, the report said, citing Ali Askar Sher Mohamad, chief operating officer of the Sustainable Energy Development Authority.

Chinese solar producers have been expanding their capacity outside China to avert import duties. Southeast Asia is attracting the most investors given the region’s low labour costs, local policy incentives and proximity to China, according to Bloomberg New Energy Finance.

Changzhou, China-based Trina didn’t immediately respond to an e-mail seeking comment. — Bloomberg