Chinese industry insiders have warned that the announced US plan to ban foreign-made inverters – a move likely aimed at reducing dependence on China – will be difficult to implement and hurt the domestic industry.
Washington is working on a plan to ban foreign inverters — a vital component used in renewable energy systems — over national security concerns, Reuters reported on Tuesday, with a draft likely to be published by the end of the year.
But phasing out Chinese inverters won’t be easy, according to Chinese inverter giant Sungrow. The company warned in a statement on Thursday that it took China 20 years to develop its industrial chain for the product, and it could take the United States five years to build its own domestic supply chain.
“US domestic brands hold about 10 percent of the market share. Building a complete industrial chain cannot be achieved overnight,” she added.
Sungrow and its Chinese counterpart Huawei Technologies are the world’s largest suppliers of inverters, according to a report by natural resources consultancy Wood Mackenzie released earlier this year. Chinese companies make up six of the top 10 global suppliers in the rankings.
During an investor relations event on Wednesday, details of which were released on Thursday, Sungrow pledged to strictly adhere to local laws and respond to trade barriers with “product competitiveness and customer confidence.”
