BUSINESS

Beijing Hits Back at EU Funding Block for Projects Using Chinese Inverters

Published: May. 11, 2026 3:32 p.m. GMT+8

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A solar inverter maker exhibits in Guangzhou on April 15, 2026. Photo: VCG

China accused the European Union of stigmatizing Chinese products after Brussels decided to block funding for renewable-energy projects using Chinese-made inverters, opening a new front in Europe’s tightening scrutiny of China’s clean-tech supply chain.

A Chinese commerce ministry spokesperson said on Thursday that the EU had labeled China a “high-risk country” without any concrete evidence and was using that designation to restrict Chinese products. The ministry said it “firmly opposes” the move, warning that it could damage China-Europe trust, disrupt global supply chains and raise the risk of decoupling.

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China accuses EU of stigmatizing products after blocking EU funding for renewable projects using inverters from "high-risk" countries including China, starting Nov. 1.
Chinese inverters grew from 45% to 61% of EU imports (2018-2024); Huawei and Sungrow lead globally.
Escalates EU scrutiny on Chinese EVs, wind turbines, solar panels amid security, subsidy concerns.

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Who’s Who

Huawei Technologies Co. Ltd.: A January 2026 Wood Mackenzie report ranked Huawei Technologies Co. Ltd. as one of the top two global solar inverter companies in H1 2025, alongside Sungrow, ahead of European rivals. Chinese inverters hold 61% of EU imports (2018-2024).

Sungrow Power Supply Co. Ltd.: Sungrow Power Supply Co. Ltd. (300274.SZ) ranked #2 global solar inverter company in H1 2025 per Wood Mackenzie, after Huawei. On April 27, it downplayed EU funding restrictions' impact, estimating affected projects at 10-20% of EU total (which it avoids), while building a Poland factory and prioritizing cybersecurity/compliance.

Ming Yang Smart Energy Group Ltd.: On March 26, the U.K. government announced it would not support turbines made by Ming Yang Smart Energy Group Ltd. (601615.SH) in British offshore wind projects, citing national security concerns.

Goldwind Science & Technology Co. Ltd.: In February, the European Commission launched an investigation into Goldwind Science & Technology Co. Ltd. (002202.SZ) under its Foreign Subsidies Regulation, the first such probe into a single Chinese wind turbine manufacturer.

LONGi Green Energy Technology Co. Ltd.: In April 2024, the EU investigated subsidiaries of LONGi Green Energy Technology Co. Ltd. (601012.SH) under its Foreign Subsidies Regulation, alongside Shanghai Electric. The companies withdrew from a public tender a month later due to extensive disclosure requirements.

Shanghai Electric Group Co. Ltd.: In April 2024, the EU investigated subsidiaries of Shanghai Electric Group Co. Ltd. (601727.SH) under its Foreign Subsidies Regulation, alongside LONGi Green Energy. The company withdrew from a public tender a month later due to extensive disclosure requirements.

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