The Trump administration is preparing new rules to prevent companies with significant Chinese ownership from claiming green energy tax credits in the U. S. This comes as Chinese solar companies attempt to restructure to maintain access to the American market.
• The new guidance will deny green energy tax credits to companies where China owns more than 25%. This is part of Trump's One Big Beautiful Bill.
• Companies like Canadian Solar are creating structures that seem American but are still heavily linked to China. Canadian Solar’s founder has ties to the Chinese Communist Party and most of its assets are in China.
• Other firms, like T1 Energy and SEG Solar, are also trying to reduce their Chinese ownership to comply with U. S. regulations, yet maintain connections with Chinese firms.
• T1 Energy aims to keep its Chinese stakeholder under 25% by licensing technology through a Singapore-based entity.
• SEG Solar, despite claiming to be independent, still shows operational ties to China's Jiangsu Seraphim.
• Experts state that these practices demonstrate a significant threat to U. S. industries because Chinese firms could influence and control operations from within the U. S., undermining national interests.
• Nathan Picarsic from Horizon Advisory emphasizes that simply examining ownership is insufficient; broader considerations regarding influence and control by China are necessary for regulatory compliance.
• Other examples include Illuminate USA, which is in partnership with LONGi, and Sinotec Solar, whose CEO has connections to a state-run Chinese company.
The ongoing adjustments by Chinese solar firms reflect a strategic response to U. S. policies aimed at limiting their market access. As the Trump administration readies its guidance, it highlights the complexities surrounding foreign ownership and influence within the U. S. green energy sector. This situation underscores the need for vigilant regulatory oversight to prevent potential exploitations by foreign entities.
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