The Treasury Department is finalising guidance that will prevent firms holding at least 25 % Chinese ownership from receiving federal green‑energy tax credits. The rule, tied to the Trump administration’s One Big Beautiful Bill Act, is set to take effect later this year and has already triggered a scramble among US‑based solar companies to adjust their ownership structures.
Companies racing to stay below the threshold
Canadian Solar, a panel manufacturer headquartered in Ontario, illustrates the new pressure. The group recently announced a joint venture to regain direct control of its US operations, yet its Chinese subsidiary CSI Solar still holds a 24.9 % stake – just under the disqualifying level. Founder and CEO Xiaohua Qu, who sits on a Communist Party‑controlled advisory body in China, has repeatedly stressed the importance of the Chinese market, describing economies outside the country as “foreign markets” in a 2012 interview with China Daily. Despite the restructuring, the majority of Canadian Solar’s assets and workforce remain in China, where six subsidiaries benefit from preferential tax treatment as “high and new technology enterprises”.
In Texas, T1 Energy markets itself as an “integrated U.S. supply chain” business. It was created after purchasing an Austin facility from Trina Solar, a Chinese giant that now retains a 17 % equity stake. Trina also appointed director Mingxing Lin to T1’s board and secured technology‑licensing agreements that the firm now routes through a Singapore intermediary to avoid breaching the forthcoming rules.
SEG Solar, which promotes itself as a “robust American solar company”, continued to work with its former affiliate Jiangsu Seraphim – now renamed Century New Energy Technology – until late 2024. President Jun Zhuge, who previously chaired the Chinese entity, still sources components from the former parent under ongoing supply contracts.
Wider industry implications
Analysts warn that the ownership ceiling may not be enough to curb Beijing’s influence over the US solar supply chain. “China's strategy is clear: if they can't undercut U.S. producers through cheap imports, they'll infiltrate the market directly,” said Nick Iacovella of the Coalition for a Prosperous America. He added, “This isn't just ownership, it's about control over technology, production, and decision-making.” Nathan Picarsic of Horizon Advisory argues that Chinese firms often exert control through supply‑chain dominance, regulatory leverage or technological dependencies, not merely through equity stakes, underscoring the need for broader scrutiny.
Other firms under observation include Illuminate USA, a joint venture that involves Chinese behemoth LONGi, and Sinotec Solar, led by CEO Guangming Jin, who also serves on the board of a China Power International Development subsidiary in Nigeria. None of the companies approached for comment have responded.