China considers curbs on solar tech exports to US

Chinese officials have held initial talks with providers of solar panel manufacturing equipment as they consider restricting exports of the most advanced technologies to the United States, according to five people familiar with the consultations, News.Az reports, citing Reuters.

Such a move would risk undermining investments by U.S. companies and could slow progress in the global competition for space-based computing.

China, which is estimated to produce more than 80% of the world’s solar panel components, is also home to the top 10 suppliers of equipment used to manufacture solar cells.

No final decision has been made, and the discussions have not yet reached the stage of formally gathering industry feedback, two of the sources said. The industry itself has been grappling with severe overcapacity following years of rapid expansion.

If implemented, the restrictions could affect plans by U.S. firms, including Tesla, which has been expanding efforts to build or scale up domestic manufacturing capacity.

The proposed measures would also broaden China’s export controls in another strategic technology area, building on Beijing’s earlier decision to restrict rare earth exports in response to U.S. tariffs.

The development comes amid growing competition between China and the United States in emerging technologies, including space-based computing systems powered by solar energy. This area has attracted interest from companies such as Google and Amazon, which are investing in energy storage and solar-linked infrastructure while also exploring orbital data centers to meet rising AI energy demands.

Analysts and industry executives have reportedly been preparing for possible export restrictions, partly due to concerns about efforts by Elon Musk and others to expand solar manufacturing capacity in the United States and reduce dependence on China.

Xu Xiaohua, chairman of Anhui Huasun Energy, told Caijing magazine that Musk aims to take advantage of China’s solar industry slowdown to acquire equipment and talent, calling for stronger efforts by Chinese firms to maintain their technological advantage. Huasun did not immediately respond to requests for comment.

The potential restrictions come as preparations continue for a planned summit between Chinese President Xi Jinping and U.S. President Donald Trump in Beijing next month, which both sides view as an opportunity to stabilize trade relations.

According to a previous Reuters report, Tesla has been seeking to purchase $2.9 billion worth of solar manufacturing equipment from Chinese suppliers, including Suzhou Maxwell Technologies, which is reportedly seeking export approval from China’s commerce ministry.

Musk has previously stated that solar energy could meet all U.S. electricity needs, and Tesla has set a target of achieving 100 gigawatts of solar manufacturing capacity in the United States before 2028.

News.Az 

By Nijat Babayev