Chinese energy technologies face further pressure as US declares emergency

The administration of US President Donald Trump this week declared a national emergency that allows it to restrict the use of certain foreign equipment in the US electricity grid. The White House justified the move by citing an “unusual and extraordinary foreign threat” posed by equipment used in transmission systems. The European Union has also moved in a similar direction this year, restricting public funding for projects using inverters from suppliers considered high-risk, while in Czechia, the National Cyber and Information Security Agency (NÚKIB) last year warned of security risks linked to Chinese technologies and their remote management.

The Trump administration's order generally prohibits the purchase or installation of certain foreign equipment intended for electricity transmission systems, including related critical software and digital functions that could pose cyber or operational risks.

For transactions involving foreign entities that pose risks such as sabotage, unauthorised access or disruption to critical infrastructure operations, the government may also impose additional conditions. The measure does not apply to equipment used for local electricity distribution.