Jiangsu Goodwe Power Supply Technology Co Ltd

The US Federal Communications Commission updated its list of regulated equipment, banning the import of Chinese internet-connected power inverters, sending A-share inverter stocks lower. Sungrow Power Supply closed down 4.93 percent. On July 28 local time, the FCC added new Chinese humanoid robots, quadruped robots, and internet-connected power inverters to its prohibited import list, claiming the move aims to guard against national security risks and boost manufacturing reshoring. The ban directly targets grid-tied inverters used in solar energy storage and AI data center applications. The FCC said the decision followed a White House-led interagency review, which found that such equipment could create supply chain vulnerabilities and pose cyberattack risks. Sungrow Power Supply Chairman Cao Renxian previously responded that the company's inverters exported to the US have no remote upgrade or communication functions and comply with US standards. He added that US Department of Energy testing found no malicious features, and the company will stick to compliant operations and rely on product competitiveness and customer trust to navigate trade barriers. Currently, local brands hold only about 10 percent of the US inverter market. Industry insiders believe that China's industrial chain took 20 years to mature, and building a complete local supply chain in the US will take at least five years. Sungrow Power Supply is advancing its global strategy, with a factory in Thailand already operating and a plant in Poland expected to be completed in the first half of next year, covering inverters and energy storage products. Foreign Ministry spokesperson Mao Ning said China firmly opposes the US overstretching the concept of national security to suppress Chinese companies, and that protectionism harms US businesses and consumers. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.

The Trump administration is pushing the Federal Communications Commission to draft a ban on foreign inverter imports, planning to restrict new-model overseas inverters from entering the US market on grounds of grid security. The new rules could be implemented within the year and are currently in the draft consultation stage. Earlier, the European Commission had already decided, citing cybersecurity risks, to limit funding from institutions such as the European Investment Bank for renewable energy projects using inverters from high-risk countries. After the news spread, the A-share solar inverter sector saw a sharp correction on July 1 and 2. Sungrow Power Supply dropped nearly 20 percent intraday and closed down 13.9 percent, with its total market value falling below 300 billion yuan. GoodWe, Ginlong Technologies, and other concept stocks also fell. Sungrow said during a conference call that its US business accounts for about 15 to 20 percent of revenue, but the impact of funding restrictions by individual EU banks is limited. Deye and GoodWe both stated that their US market revenue shares are only about 2 to 3 percent and within 1 percent respectively, and that the likelihood of the policy being implemented is low. Companies can mitigate risks through overseas production capacity. Industry insiders point out that Europe and the US will find it hard to shake off their reliance on Chinese inverters in the short term. Ninety percent of utility-scale inverters in the US rely on imports, and Chinese inverter companies hold close to 80 percent of the global market share. In 2025, exports reached 9.04 billion US dollars, of which exports to the US were only 290 million dollars. Currently, Sungrow, Ginlong, and others have set up production capacity in Southeast Asia, Europe, and other regions. Sungrow's factory in Poland and Deye's factory in Malaysia are both under construction.