In a solar power plant in Dallas, a American flag hangs high above the factory. Inside the plant, 1200 workers work together with automated equipment to produce 20,000 solar panels every day, which accounts for about 1/10 of the total production in the United States. This plant is designed to have a capacity of 5 gigawatts, and theoretically, its annual production could meet the electricity needs of 1 million American households.
T1 Energy CEO Russell Gold is excited to boast that “never underestimate the engineering and innovation capabilities of the United States.”
However, the British magazine The Economist recently reported that this factory, which Golder described as a symbol of America's new energy 'revival', was not originally owned by an American company. It was built by China's leading photovoltaic company Suntech in 2024, but it was sold quickly just a few days after it started production.
Reports indicate that Chinese companies are selling their clean energy assets across the United States. Since 2025, nearly $9 billion in Chinese renewable energy investments in the US have been cancelled, suspended, or sold to local investors. In 2022 and 2023, there was no such investment. Even in 2024, the scale of sales by Chinese companies of clean energy assets in the US was very small.
2018 to 2026: Chinese capital investments in the US new energy sector. Grey colors indicate committed investments, red colors indicate suspended or cancelled investments. Chart created by The Economist.
The latest wave of sell-offs was triggered by a barely noticed change in the “Great American Taxpayer and Spending Act” of 2025. According to guidance from the U.S. Treasury Department, projects that commence after December 31, 2025, will not be eligible for tax credits if they include significant funding or components from so-called “foreign entities of interest.” As a result, Chinese companies are transferring their assets in the United States and reducing their shareholdings.
British media have noted that most of the assets being taken over by Chinese companies are owned by local investors, which has brought unexpected profits to American investors. However, whether these transactions will reduce America's dependence on China in the field of new energy is another matter.
The former economic and business counselor of the Chinese Consulates in San Francisco and New York, and a standing director of the China International Trade Association, He Weiwen told Observer Network that in recent years, the United States has included a large number of industry activities related to China, such as new energy and automotive components, under the so-called "national security" category. This is the main obstacle faced by Chinese enterprises operating in the United States.
But He Weiwen analyzed that the United States still has a strong dependence on China in many key aspects of the new energy industry, including equipment, raw materials, and some key components. This means that the US cannot completely “dehook” itself from China. This is precisely a “lever” that the Chinese side can use when facing US pressure. “We must make good use of it.”
The Economist reported on June 28 that even as Sino-US relations have become increasingly tense, the US clean energy industry has been increasingly "sinicized" in the past. Between 2022 and 2024, Chinese companies invested $15.5 billion in green energy projects in the United States, which is nine times more than in the previous four years.
The previous Biden administration provided substantial subsidies to the green industry, which led to a doubling of the annual production capacity of solar panels in the United States. By 2025, the production capacity will reach 65 gigawatts, of which 25 gigawatts will come from manufacturers associated with China.
But now, everything is in jeopardy. After Trump’s “big and beautiful” tax and spending bill was passed in July last year, companies related to China were banned from receiving subsidies. The relevant provisions state that companies can receive a tax credit of 7 cents per watt of solar panels produced, and 35 dollars per kilowatt-hour of batteries produced. Take the 5 gigawatt plant built by Sunpower in Dallas as an example; the subsidy could amount to $350 million per year.
T1 Energy Company Factory
Additionally, Chinese companies that operate photovoltaic and battery assets in the United States have been classified by the US as so-called "focused foreign entities," which has had a significant impact. Herbert Crowther, an analyst at Eurasia Group, stated that US regulatory authorities have strict interpretations of this rule: Chinese-owned shares must not exceed 25%, factories must not rely on Chinese-authorized technologies, and the proportion of raw materials from Chinese suppliers must not exceed 50%. This ratio is scheduled to drop to 15% by 2030.
"These restrictions have inflicted significant shocks on Chinese investors." *The Economist* notes that BoWei Alloy, in its filing with the Shanghai Stock Exchange in April, stated that its North Carolina solar factory became unprofitable after government subsidies were revoked. Even if corporations could withstand losing tax breaks, they would struggle to compete against domestically subsidized American suppliers.
Due to increasing uncertainty, some photovoltaic installers, banks, and insurance companies have suspended their business dealings with relevant manufacturers, fearing that their tax credits may not be realized. It is reported that U.S. regulators even expect and hope that Chinese producers will completely withdraw from the market before new regulations are introduced.
According to reports, due to legal changes, American capital has taken control of a large number of these assets, technologies, and intellectual properties. Last year, a subsidiary of the American company Corning acquired a 2 GW photovoltaic plant owned by Chinese solar panel leader JA Solar Technology in Arizona, with the price not disclosed. In May, Bowling Alloy sold its newly built 3 GW plant in North Carolina for $254 million, at a price that was 15% lower than the construction costs.
American companies, who have tasted some success, have taken the opportunity to hype up narratives of competition between China and the US, attempting to lobby the Trump administration to introduce more supportive policies.
Golden rendering said, "Saudi Arabia was once the largest oil producer, Russia led the natural gas supply, and today the United States is a superpower in energy." However, in the field of photovoltaics, China remains the world's largest producer. He declared that the United States should impose higher tariffs on Chinese polysilicon, "so that we can stand firm in the global competition."
To cope with the tightening of U.S. policies, some Chinese companies that wish to continue operating in the U.S. market have chosen to establish joint ventures with local partners, or adopt other flexible methods to comply with U.S. regulations.
For example, in December last year, Atos announced a restructuring of its operations in the United States, establishing a new joint venture company called CS PowerTech to oversee manufacturing and sales activities in the U.S. Atos will hold a controlling stake of 75.1% in CS PowerTech. Additionally, Atos acquired certain overseas assets that support its business in the U.S. This move effectively separated these core assets from its Chinese listed subsidiary, Atos Solar Energy Group, which is based in Suzhou. Atos also stated that “the company plans to form more joint ventures with American partners to expand its market presence in the solar energy and power sectors.”
Mona Dajani of Kroll Associates in the United States pointed out that Artes’ transfer of its American assets back to its Canadian parent company is essentially equivalent to establishing a joint venture with “its own company”. The goal is compliance, not integration.
On the other hand, The Economist analysis indicates that American clean-tech companies are concerned about potential countermeasures from the Trump administration if they merge with Chinese companies. Meanwhile, Chinese companies attempt to prevent the leakage of technology to competitors. As a result, a large number of Chinese companies’ assets have been acquired by American financial investors rather than industrial investors.
Jinko Energy sold 75% of its 2 gigawatt factory in Florida to the American investment firm FH JKV Holdings Limited. Klauder believes that this creates a 'convenient marriage'—the American partner receives most of the financial benefits, while the Chinese side provides operational capabilities.
In May, Jinko Energy responded to 21st Century Business Herald by stating that the company had not given up the US market, and this transaction was beneficial for the company to maintain its long-term strategic position in the US. The report mentioned that the actual controller of the new entity involved in the equity acquisition is Ms. ZHANG WEI, a citizen of Australia. Industry insiders revealed that this person is Zhang Wei, the spouse of "photovoltaic godfather" Shi Zhengrong.
British media point out that it is extremely difficult to separate from the Chinese supply chain in any industry, especially in the field of clean energy. China produces 95% of the world's polysilicon, which is the core material for solar panels.
Some investors refuse to disclose their alternative supply sources, as obtaining non-Chinese scarce materials has become a competitive advantage in itself. Other companies try to reduce their so-called “connections with China” through alternative methods. However, regardless of this, after the Chinese investments withdraw, all the production lines still use Chinese technology. The photovoltaic components they produce are designed and manufactured using Chinese equipment.
He Weiwen pointed out that currently, the main obstacles faced by Chinese new energy companies in the United States are not economic or technical barriers, but political obstacles, namely the so-called 'national security'.
He explained that China's new energy technology has surpassed that of the United States. Therefore, the United States considers this a “threat” to its own interests. Chinese automotive parts and port machinery, among other products, are arbitrarily labeled as having “national security risks” by the US side, and they are required to be replaced with products from other countries.
"U.S. generalizing national security concepts in reality means to suppress China," He Weiwu believes that the U.S.'s concern over China's manufacturing industry has a strong trend, as long as Trump is in power, this suppression trend will continue.
According to him, even during the time of former U.S. President Barack Obama, the United States had already noticed the crisis in its domestic manufacturing industry and felt 'concerned' about it. However, more than a decade has passed since then. Especially after Trump's prolonged interference, the real 'return' of American manufacturing is limited, or even non-existent at best.
He Weiwen said that, on a local level, the American manufacturing industry will attract some new investments, such as in the chip and semiconductor industries. However, overall, it is 'impossible' for the United States to once again become the world's largest manufacturing nation. Currently, some of the return of American manufacturing relies on administrative forces rather than market mechanisms, such as subsidies and designated enterprises for investment. 'This approach will not last long.'
Historical experience has already proven that the manufacturing advantages of the United States have been lost, and have shifted to other countries. He Weiwu directly stated that recent American governments have forced counterproductive policies in order to attract a portion of "rust belt" voters rather than the entire country's forward direction, which does not comply with objective laws of nature.
"You can't do it." He Weiwu said, "America is limiting China in terms of security while at the same time being indispensable to Chinese technology. Therefore, this also gave us some leverage, which means we have to recognize the seriousness and difficulty of America using the excuse of 'national security' to suppress China, while also realizing that we don’t lack bargaining chips, and must use our leverage well."
