Trade War Heats Up Again! US Slaps China with Ban on This Key Item

The administration of US President Donald Trump is reportedly drafting a radical policy to completely ban the import of foreign inverter devices, especially those made in China, which connect solar and battery projects to the national electricity grid. This move follows deep concerns that Beijing could infiltrate and exploit these devices to cripple the US domestic power supply. Citing a Reuters report on Wednesday (01/07/2026), the strict draft restrictions being designed by the US Federal Communications Commission (FCC) will target all new foreign-made inverter models. The policy is projected to be officially published by the end of this year at the earliest. Responding to the leaked draft boycott, the Chinese Embassy in Washington immediately lodged a strong protest and flatly rejected the proposed new rules, which it considers discriminatory against its corporations. ‘We strongly oppose the excessive expansion of the national security concept and the unjustified suppression of Chinese companies,’ the Chinese Embassy stated, while urging the US to provide a fair and non-discriminatory business environment. Conversely, the US domestic political camp enthusiastically welcomed the total blocking plan to secure the sovereignty of the nation’s vital infrastructure. Republican Senator Tom Cotton asserted that dependence on the Bamboo Curtain’s supply chain for energy supply is a real threat that seriously endangers national stability. ‘Relying on China for inverter devices puts our entire power grid at risk. I fully support any effort to ban these dangerous products,’ Cotton said in an official release to Reuters on Tuesday (30/06/2026). The concerns of the US and Europe are considered highly reasonable given that China is currently the world’s largest producer of inverters, led by technology giants Sungrow Power Supply and Huawei. Furthermore, an in-depth investigation by US security experts last year surprisingly discovered unauthorised dark communication devices deliberately planted inside some Chinese-made solar inverters connected to the main power grid. ‘Europe and America are waking up to the risk of losing sovereign control over their own power systems through inverter devices,’ said Uri Sadot, CEO of energy security firm SolarDefend. The FCC’s planned market intervention marks the return of Washington’s increasingly aggressive defensive approach in thwarting Chinese technological threats, after softening last year in pursuit of a detoxification of bilateral relations under Donald Trump. This step aligns with the commitment of G7 leaders who agreed to tighten global cooperation frameworks to reduce supply chain dependence on critical minerals and technology from China.