Shares of Chinese inverter manufacturers declined following the recent ban issued by the U.S. Federal Communications Commission on the import of advanced humanoid and quadruped robots, as well as connected power inverters.
Sungrow Power Supply saw its stock fall 1.4%, trading at CNY104.97 (about $15.51) as of 2 p.m., after a 4.9% drop the previous day. GoodWe Technologies also experienced a decline, falling 1.5% yesterday and an additional 4.6% to CNY60.90 (roughly $9) by midday today.
On July 28, the FCC added advanced robotic devices and connected power inverters made overseas to its Covered List. These products are restricted unless they have received Conditional Approval from the Department of Commerce or the Department of Homeland Security, citing potential “unacceptable risks to U.S. national security or the safety and security of U.S. citizens.” The ban applies solely to new models.
This move follows reports from late June indicating that the Trump administration was preparing a significant ban on Chinese inverters, which led Sungrow’s stock to plummet nearly 14% the next day.
According to company officials, the inverters exported to the U.S. do not possess remote upgrade or communication functions and meet all U.S. standards. A spokesperson from Sungrow confirmed that earlier testing by the Department of Energy showed no malicious wireless communication features embedded in Chinese-made inverters.
In recent years, Sungrow has been expanding its global footprint. Its manufacturing facility in Thailand is operational, and a new plant in Poland is under construction, expected to begin producing inverters and energy storage solutions early next year. This move supports the company’s strategy to localize operations across Europe and boost customer confidence, according to company leadership.
The company’s leadership also emphasized their commitment to establishing overseas production capacities aligned with global operations to be closer to their customers.
Last October, Sungrow reported that U.S. sales accounted for approximately 15-20% of total revenue. The high profit margins associated with energy storage inverters in North America made the company’s stock particularly vulnerable to the ban.
Exports of Chinese inverters increased significantly, jumping 34% to $1.2 billion in June compared to the previous year. For the first half of the year, exports reached $5.5 billion, up 30% from the same period last year, as per customs data.
Furthermore, about 90% of inverters used in U.S. public utility photovoltaic projects last year were imported, primarily from China, according to a recent report by global research firm Wood Mackenzie.