- Chinese officials are discussing limits on exports of advanced technology used to make solar panels, particularly to the US, according to reports. Such restrictions could threaten investments by US companies – including Tesla – in domestic solar factories.
- China produces more than 80% of the world’s solar panel components and houses the top ten suppliers of manufacturing equipment. A clampdown would expand Beijing’s export control regime, which already covers rare earth elements and some battery technologies.
- Industry analysts say Beijing wants to preserve its technological lead and sees Tesla’s push to build 100 GW of US solar manufacturing by 2028 as a competitive threat. Talks remain at an early stage and no formal rule has been proposed.
China is considering restricting exports of advanced solar panel manufacturing equipment, in a move that could reshape global supply chains and threaten US efforts to build up domestic solar production.
Five sources with knowledge of preliminary consultations told Reuters that officials from China’s commerce ministry have held talks with equipment suppliers about introducing licensing requirements for high‑end machines used to produce heterojunction (HJT) and other high‑efficiency solar cells.
Beijing is keen to protect its dominant position: China manufactures more than 80% of the world’s solar components and is home to the ten largest equipment suppliers.
A clampdown would widen China’s burgeoning export‑control regime. Last year Beijing imposed licensing requirements for exports of certain rare earth elements and battery materials, citing national‑security concerns and US trade measures.
Officials fear that unfettered exports of cutting‑edge solar machinery could enable rivals to replicate China’s industrial advantage. The looming threat of restrictions comes at a moment when US automaker Tesla is seeking to buy roughly $2.9 billion worth of equipment from Chinese suppliers to build up to 100 GW of solar manufacturing capacity in the United States.
Analysts at Trivium China warn that Tesla’s self‑sufficiency drive could be a “nightmare” for Chinese manufacturers, reducing their customer base while creating a powerful competitor.
Although no rule has been finalised and talks have not progressed to formal industry consultation, the potential move has already rattled investors. Export controls could delay or raise the cost of US solar‑factory projects, undermining President Trump’s goal of securing supply chains in strategic sectors.
The curbs would also show Beijing’s willingness to weaponise its green technology dominance in response to US tariffs and investment restrictions, broadening the list of sensitive technologies subject to licence. By targeting high‑end manufacturing equipment rather than finished panels, China would maintain leverage over global solar capacity expansion without immediately raising panel prices.
China’s deliberations highlight the fragility of renewable‑energy supply chains. British developers have significant exposure to Chinese equipment; any restrictions could raise costs and slow project timelines, especially if the US and EU respond with their own controls.
On the upside, trade frictions may accelerate investment in European and domestic manufacturing of solar equipment, battery cells and other clean‑tech components. Policymakers will need to balance the desire for resilient supply chains with the realities of China’s industrial dominance and the risk of retaliatory tariffs or export bans.
