Chinese Clean-Tech Firms Scrap $2.8 Billion Investments In The U.S. Amid Tighter Rules
Chinese clean-technology companies have scrapped roughly $2.8 billion in planned investments in the U.S. this year, a significant retreat from the American market as stricter foreign ownership rules and reduced federal clean-energy incentives reshape the sector.
The pullback comes as economic tensions between Washington and Beijing remain elevated, with trade restrictions and industrial policy disputes deepening alongside wider geopolitical strains tied to conflicts in Europe and the Middle East.
More than half of the Chinese clean-tech investments announced in the United States since 2022 had been canceled, delayed, or paused by the end of March, according to new analysis from Rhodium Group, which tracks global industrial investment trends. The research also found overall US clean-technology investment fell 17% last year.
The reversal marks a sharp change from 2023, when generous tax incentives under former President Joe Biden’s Inflation Reduction Act encouraged Chinese manufacturers of solar panels, batteries and electric-vehicle components to announce about $5.6 billion in new US projects, according to Bloomberg.
That momentum slowed after the Trump administration rolled back several Biden-era clean-energy measures and introduced tighter restrictions tied to “foreign entities of concern,” a designation aimed largely at limiting Chinese participation in strategic US industries.
One of the clearest examples came last week, when Chinese solar giant Jinko Solar agreed to sell about a 75% stake in its Florida solar-panel factory to private equity firm FH Capital. The company said the transaction was intended to optimize overseas assets, improve compliance, and support its long-term US operations, according to statements carried by Bloomberg.
The deal follows similar moves across the sector. Trina Solar sold a majority stake in its Texas assembly facility in 2024, while Corning acquired an Arizona manufacturing plant previously owned by JA Solar last year.
Earlier this week, Shanghai-listed Ningbo Boway Alloy Material said it would sell US solar manufacturing assets to India’s INOXGFL Group, citing tougher foreign-entity requirements under new US tax legislation, The Hindu reported.
A major pressure point has been changes tied to the One Big Beautiful Bill Act, which altered eligibility for Section 45X manufacturing tax credits. Under the revised framework, factories owned by Chinese firms—or heavily dependent on China-based supply chains—face greater difficulty qualifying for federal incentives, according industry analysis published by Solar Power World.
The policy tightening has also hit broader clean-energy manufacturing. Global clean-tech investment dropped 42% in 2025 from its 2023 peak, with the United States and China accounting for much of that slowdown, according to Semafor.
The US-China clean-tech relationship has become increasingly entangled with national security concerns. Washington has sought to reduce reliance on Chinese-made solar components, batteries, and critical minerals, while Beijing has expanded efforts to protect its dominance across clean-energy supply chains.
That dynamic has intensified since Russia’s war in Ukraine exposed vulnerabilities in global energy markets and pushed governments to prioritize domestic industrial capacity. More recently, the war in Iran has renewed concerns over energy disruptions, adding urgency to efforts by major economies to secure strategic manufacturing closer to home.
The slowdown reflects a broader shift in US policy toward Chinese participation in industries tied to energy and advanced manufacturing. Since 2022, Washington has expanded trade restrictions and supply-chain rules targeting Chinese-made solar panels, battery materials and critical minerals as part of efforts to reduce reliance on Chinese imports, the Bloomberg report said.
