Chinese suppliers are emphasizing compliance, limited U.S. exposure and geographic diversification as Washington broadens restrictions on power equipment.
From ESS News
Chinese inverter and electrical equipment manufacturers have adopted a largely cautious response to a series of U.S. restrictions introduced since July, with companies seeking to distinguish the immediate impact on existing business from the potentially greater consequences for future products and market access.
The U.S. Federal Communications Commission (FCC) on July 28 added certain foreign-produced power inverters to its Covered List, effectively preventing affected new products from obtaining FCC equipment authorization. The measure targets utility-interactive inverters equipped, or designed to accept components, for remote communication, monitoring or control.
On Aug. 20, however, the FCC both refined yet widened the measure, excluding some inverters eligible for the Section 45X advanced manufacturing tax credit, adding wired products (not just wireless) and clarifying that non-grid-interactive products fall outside the restriction.
Washington widened the policy further on Aug. 26, when President Donald Trump signed Executive Order 14420 declaring a national emergency over foreign supply of bulk-power system equipment. The order covers equipment used on transmission systems of 69 kV and above, including grid-connected inverters, battery storage systems, transformers and industrial control systems, while excluding local distribution facilities. The Department of Energy has 120 days to develop rules implementing this.
China’s government has responded more forcefully than its manufacturers. The Ministry of Commerce described the FCC action as discriminatory and accused Washington of expanding the concept of national security to interfere with normal trade, warning that China would take countermeasures if the restrictions continued. The Ministry of Foreign Affairs has used similar language, arguing that protectionism would hurt U.S. companies and consumers.
Sungrow provides details
Among manufacturers, Sungrow has offered the most detailed response, reflecting its comparatively larger exposure to the U.S. market, which Chinese disclosures put at roughly 15% to 20% of revenue. In July, the company said its U.S.-bound inverters did not have remote upgrade or remote communication functions and complied with applicable U.S. standards.
Following the FCC decision, Sungrow said existing certified photovoltaic inverters and energy storage systems sold in the United States were unaffected, although new product certification would be constrained.
After the Aug. 26 executive order, however, Sungrow initially adopted a more cautious position, saying it was still studying the measure and could not yet assess its impact.
In a more recent exchange with institutional investors, the company went further, acknowledging that its U.S. business is likely to gradually shrink over the longer term amid persistent geopolitical uncertainty.
Sungrow said it plans to keep the risks associated with the U.S. market under control by shifting more resources toward other regional markets, strengthening innovation and expanding its channel business. The company also said it is not currently considering building manufacturing capacity in the United States, arguing that the competitive environment remains unfavorable for Chinese companies, while local production would offer limited cost advantages and would not necessarily remove concerns among U.S. customers.
At the same time, Sungrow said it does not expect its U.S. business to disappear abruptly. Instead, it is exploring cooperation with overseas companies in areas including components, services and smaller-scale systems. The comments mark a shift from the company’s earlier focus on near-term compliance and the treatment of existing products toward a broader strategy of reducing its structural exposure to the U.S. market while preserving selected commercial opportunities.
Elsewhere
Other inverter suppliers have concentrated on limiting investor concerns. Ginlong Solis said U.S. revenue represented only a single-digit share of its business, while Deye put its U.S. exposure at around 2% to 3%. GoodWe said U.S. sales accounted for less than 2% of 2025 revenue, and Sineng Electric also described its U.S. business as small. Hoymiles, meanwhile, pointed to its limited U.S. exposure and overseas manufacturing footprint.
Electrical equipment makers have taken a similar approach following Executive Order 14420. Jinpan Technology said its products are mainly used in customer-side distribution systems and therefore fall largely outside the bulk-power rules. MingYang Electric said its U.S. products are primarily rated at 34.5 kV or below, also placing them outside the order’s 69 kV threshold.
Taken together, the responses suggest that Chinese suppliers see limited immediate disruption to current shipments, but greater uncertainty around future product approvals, software and remote-access requirements, and long-term U.S. market access. Overseas factories may reduce tariffs and logistics risks, but they do not necessarily resolve restrictions based on equipment authorization, ownership or national-security criteria. The more significant issue may therefore be less about today’s U.S. revenue than whether Chinese suppliers can continue introducing new generations of inverter and grid equipment into the market.
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