Trump Administration Quietly Revives Plan to Block Chinese Solar Inverters Over Grid Security Fears

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A New Front in the Tech Standoff With Beijing

The U.S. Federal Communications Commission (FCC) is preparing a rule that would block imports of new foreign-made inverters, the devices that connect solar panels and batteries to the electrical grid. According to five people familiar with the plan who were not authorized to speak publicly, the measure could be published before the end of the year, though it could still be changed or dropped entirely.

An inverter converts the direct current produced by solar panels into the alternating current used by homes and businesses. Because modern inverters are connected to the internet for remote updates and monitoring, security experts warn they could, in theory, be used to interfere with parts of the power supply.

Neither the FCC nor the White House commented on the draft rule. China's embassy in Washington pushed back firmly, saying it opposes what it called the stretching of national security concerns to justify pressure on Chinese companies, and called for fair treatment of Chinese businesses in the U.S. market.

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Why Now: Europe Moved First

The push to revive the U.S. ban gained momentum after the European Commission decided in May to bar Chinese-made inverters from projects funded with EU money, including financing channeled through the European Investment Bank. That European decision, which also affects funding for solar, wind and battery storage projects, applies to suppliers from countries Brussels considers high-risk, namely China, Russia, Iran and North Korea.

China's Ministry of Commerce strongly criticized the EU measure at the time, accusing Brussels of designating China a "high-risk country" without concrete evidence and warning the move could damage trust and disrupt supply chains between the two economies, according to the South China Morning Post.

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A Stop-and-Go Effort in Washington

This is not the first time Washington has considered such a ban. Nine people familiar with the matter say the Trump administration looked at restricting Chinese inverters once before. Last summer, the White House's National Energy Dominance Council asked the Commerce Department to draft an expedited ban, but the effort stalled.

At the time, the administration was pursuing a period of easing tensions with Beijing, partly in response to China's tightening of export controls on rare earth minerals, materials critical to manufacturing and defense. That détente led the Commerce Department to shelve a number of planned restrictions on Chinese technology, including measures targeting drone and router manufacturers.

The FCC later stepped in on its own, banning new foreign-made drone and router models in December and March. Companies can apply for waivers, but none have yet been granted to Chinese firms. The FCC has described both bans as "country neutral."

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Security Concerns Have Surfaced Before

Concerns about Chinese-made inverters are not new. Reuters previously reported that U.S. security experts who examined the internal hardware of some Chinese-made inverters found communication devices that were not listed in the official product documentation. The discovery added to longstanding worries among U.S. officials and lawmakers about the cybersecurity of energy infrastructure tied to foreign-made equipment.

China dominates the global inverter market. State-linked companies such as Huawei and Sungrow Power Supply have built large market shares in the West by offering lower prices than Western competitors. Huawei has already faced years of U.S. sanctions in other sectors over national security concerns and allegations of intellectual property theft, which the company denies.

U.S. law already restricts some government purchases: the National Defense Authorization Act for fiscal year 2026 bars the Department of Defense from buying solar panels, modules or inverters made by companies linked to "foreign entities of concern," a category that includes Chinese firms.

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A Sign of Renewed U.S.-Europe Alignment

Heather Conley, a Europe expert at the American Enterprise Institute, said the parallel U.S. and EU measures could point to closer transatlantic coordination on China policy. Earlier this month, leaders of the Group of Seven nations agreed to work together to reduce their dependence on China for critical minerals, a sign that the two sides are increasingly treating supply chain security as a shared priority.

In Brussels, policymakers are also weighing further steps, including a proposal under an updated Cybersecurity Act that could formally blacklist specific Chinese inverter suppliers from EU markets, citing the same cybersecurity risks raised in Washington.

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What Comes Next

The draft U.S. rule has not been finalized, and sources caution it could still be revised or abandoned before publication. But combined with the European funding ban and growing congressional pressure for tighter restrictions on Chinese energy equipment, the move signals that Washington's wariness toward Chinese involvement in critical power infrastructure is hardening once again, after a brief pause earlier in the Trump administration's China strategy.

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Sources:

1. Reuters – Exclusive: US working on ban targeting Chinese energy inverters, sources say – https://www.reuters.com/legal/litigation/us-working-ban-targeting-chinese-energy-inverters-sources-say-2026-06-30/
2. South China Morning Post – China vows action after EU cuts funding for green projects using Chinese inverters – https://www.scmp.com/economy/global-economy/article/3352796/china-vows-action-after-eu-cuts-funding-green-projects-using-chinese-inverters
3. Euronews – Safer grids, higher bills? EU's Chinese solar inverter ban reshapes renewable energy – https://www.euronews.com/my-europe/2026/06/04/safer-grids-higher-bills-eus-chinese-solar-inverter-ban-reshapes-renewable-energy
4. Fox News – Hidden communications devices found in Chinese solar power inverters spark national security alarm – https://www.foxnews.com/world/hidden-devices-found-chinese-solar-power-inverters-spark-national-security-alarm

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