Chinese Investors Flee US as Clean Energy Assets Are Effectively Nationalised
Chinese companies are increasingly divesting their clean energy assets in the United States after the Donald Trump administration tightened regulations prohibiting companies with Chinese connections from receiving government subsidies.
At a factory in Dallas, Texas, approximately 20,000 solar panels are produced every day. With a capacity of 5 gigawatts (GW), the facility is capable of producing enough solar modules to supply electricity to about one million homes in the United States annually. Now, the American flag flies over the factory. Until recently, however, this facility was built and owned by Trina Solar, one of China’s largest solar panel manufacturers.
The change did not occur because the factory failed to compete. Just days after commencing operations in 2024, Trina Solar divested the asset to T1 Energy. “Never bet against the United States’s engineering and innovation,” said Russell Gold, a senior executive at T1 Energy.
A Wave of Divestment
Since 2025, nearly US$9 billion of Chinese renewable energy investment in America has been cancelled, postponed, or sold to local investors. Two years prior, in 2022 and 20ability3, such transactions were almost non-existent. For American investors, this situation presents an opportunity, with several assets changing hands at discounted prices. One buyer even noted that some transactions occurred with discounts of up to 40%.
However, the sheer scale of these transactions raises a compelling question: does this shift in ownership truly reduce America’s dependence on the Chinese clean energy industry, or is it merely changing the name of the owner at the factory gates?
America Was Once a Magnet
Ironically, this wave of divestment is occurring just as America had begun to enjoy a surge in Chinese investment. Between 2022 and 2024, Chinese companies committed US$15.5 billion to green energy projects in America, approximately nine times larger than the previous four years. The combination of subsidies from the Joe Biden era and the growth of the solar panel industry made the American market a promising destination for expansion.
The results were clear. US solar module production capacity increased to approximately 65 GW per year, with about 25 GW originating from manufacturers with Chinese ties.
New Rules Change the Calculus
The shift arrived after Donald Trump signed the One Big Beautiful Bill Act last July. The regulation causes companies with Chinese connections to lose access to several critical incentives, including:
Solar panel production tax credits through Section 45X;
Battery cell manufacturing incentives;
Various subsidies for the clean energy industry.
The impact is massive. A solar panel factory with a 5 GW capacity, such as the Dallas facility, potentially stands to lose up to US$350 million in incentives per year. The government has also tightened rules regarding Foreign Entities of Concern (FEOC). Chinese company ownership is capped at a maximum of 25%, the use of Chinese technology licences is restricted, and dependence on Chinese-sourced components must be gradually reduced.
For many manufacturers, these changes are enough to transform a previously highly profitable market into one that is far more expensive to maintain.
Factories Continue to Operate
Interestingly, almost no factories have actually ceased production. The facilities remain standing, and production lines continue to run. Only the owners have changed. This pattern is visible across various transactions:
Corning acquired a 2 GW solar module factory in Arizona.
Boway sold a 3 GW factory in North Carolina for US$254 million, approximately 15% below its construction cost.
Jinko Solar divested 75% of its ownership in a 2 GW facility in Jacksonville, Florida, to FH Capital.
The facility built by Trina Solar in Dallas is now operated by T1 Energy.
However, these transfers do not automatically change the factory’s contents. The production machinery still originates from China. The technology also continues to use Chinese designs, and many components used still come from the same supply chain. Only the company name at the gate has changed.
Breaking Away from China is Not That Simple
America’s ambition to build a more self-reliant clean energy industry faces a simple reality: China still produces approximately 95% of the world’s polysilicon, the primary raw material for solar panels. This explains why moving factory ownership is far easier than moving the entire supply chain.
Some companies are choosing to form joint ventures or restructure ownership to continue operating in America. However, as stated by Mona Dajani, head of energy transactions at the law firm Cooley, the primary goal is more about complying with regulations than truly integrating business operations.
A New Arena of Competition
The story of the solar panel industry shows that trade wars are no longer solely about import tariffs. What is being contested more frequently is asset ownership, technological mastery, supply chains, and access to subsidies. Who controls the factory is becoming just as important as who controls the raw materials. America wants to build a more self-reliant clean energy industry. Yet, to this day, much of the industry’s foundation still rests on investment, technology, and supply chains originating from China. What is changing more rapidly is the ownership of the assets; their dependence, however, is not necessarily so.