How Trust in China Was Lost, and Consequently They Lost the Wind and Solar Business

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In the global race toward renewable energy, China has long been the undisputed leader in manufacturing wind turbines and solar panels. For years, Chinese companies like Huawei, Sungrow, and Goldwind dominated the market, supplying affordable equipment that powered the world’s green transition. By 2024, China controlled over 80% of the global solar PV supply chain and a significant portion of wind turbine components.

This dominance was built on aggressive subsidies, economies of scale, and rapid innovation. However, a series of alarming discoveries in 2025 shattered international trust in Chinese-made renewable equipment, exposing potential security vulnerabilities that could turn these clean energy assets into tools for espionage or sabotage. As a result, Western nations have accelerated efforts to decouple from Chinese suppliers, leading to a dramatic shift in the wind and solar manufacturing landscape—and a potential long-term decline for China’s once-unassailable market position.

The Cracks Emerge: Rogue Devices and Hidden Threats

The turning point came in May 2025, when U.S. energy officials uncovered undocumented communication devices embedded in Chinese-manufactured solar power inverters and batteries.

These inverters, essential for converting solar and wind energy into usable grid power, were found to contain “rogue” cellular radios and other hardware not listed in product documentation.

Experts warned that these components could bypass firewalls, creating backdoors for remote access.

In essence, they functioned as potential “kill switches,” allowing an adversary—such as the Chinese government—to disrupt power grids, trigger blackouts, or even cause physical damage to infrastructure.

We are prioritizing SECURE supply chains and RELIABLE baseload to unleash AMERICAN energy! pic.twitter.com/H0w6n66oI9

— Secretary Doug Burgum (@SecretaryBurgum) July 27, 2025

Similar concerns extended to wind turbines. In March 2025, military experts in Germany raised alarms over planned Chinese-made offshore wind farms, citing risks of espionage and sabotage due to embedded communication tech.

Reports also highlighted rogue devices in Chinese wind turbine components installed in U.S. facilities, amplifying fears that Beijing could exploit these for strategic advantage.

These discoveries weren’t isolated; they built on a pattern of incidents, including a November 2024 event where inverters across the U.S. and other countries were remotely disabled from China, reportedly amid a commercial dispute but highlighting the vulnerability of foreign grids.

The root of these fears lies in China’s National Intelligence Law, which mandates companies to cooperate with state intelligence agencies.

This legal framework, combined with past espionage cases—like Chinese hackers stealing U.S. turbine technology—fueled suspicions that these devices were intentionally planted for dual-use purposes: civilian energy on the surface, but potential tools for cyber warfare underneath.

Cybersecurity analyses, such as those from Forescout Research, revealed vulnerabilities in inverters from manufacturers like Sungrow and Huawei, potentially enabling grid-wide disruptions.

A Broader Pattern of Espionage Concerns

These revelations fit into a larger narrative of Chinese industrial espionage targeting renewable energy tech. Over the past decade, Chinese-linked hackers have been implicated in stealing trade secrets from Western firms to bolster domestic industries, including solar and wind.

For instance, in 2019, hackers targeted universities and companies for naval technologies that overlapped with wind turbine designs.

More recently, groups like Volt Typhoon have infiltrated U.S. critical infrastructure, exploiting weaknesses in both IT and operational technology environments.

In the solar sector, the dominance of Chinese firms—producing components like polysilicon, wafers, and cells—has long raised supply chain risks.

But the 2025 discoveries elevated these from economic concerns to national security threats. Undocumented radios could enable not just data theft but real-time control, turning distributed solar farms into a “ghost machine” network capable of synchronized attacks.

As one expert noted, controlling just 3-4 gigawatts of energy in Europe could cause widespread blackouts.

Global Backlash: Decoupling and Domestic Revival

The fallout was swift and severe. In the U.S., the Department of Energy launched an emergency review of all Chinese-made components in critical infrastructure, emphasizing the need for “Software Bills of Materials” to ensure transparency.

Legislation like the Decoupling from Foreign Adversarial Battery Dependence Act aimed to ban Chinese batteries by 2027, while initiatives like the Build America, Buy America Act prioritized U.S.-made inverters.

Companies like Florida Power and Light shifted to non-Chinese suppliers, and the American Clean Power Association pledged $100 billion for domestic grid batteries.

Europe followed suit. The European Solar Manufacturing Council called for rigorous audits and bans on high-risk components, noting that over 200GW of solar capacity—equivalent to 200 nuclear plants—relied on Chinese inverters.

In the wind sector, the European Council on Foreign Relations urged policies to secure the industry from Chinese dependence, warning that unchecked competition could eradicate Europe’s nascent revival, much like it did to the solar sector.

Countries like Lithuania blocked Chinese remote access to large energy systems, and the UK initiated a security review.

This decoupling has tangible market impacts. Trade barriers, tariffs, and subsidies for local production have surged. In the U.S., solar module prices rose as imports from China faced scrutiny, but domestic manufacturing boomed.

Globally, nations are diversifying suppliers, turning to India, Vietnam, and revived Western factories. Chinese firms, already grappling with overcapacity and losses in early 2024, now face shrinking export markets.

Let’s not forget the Spy Balloons

In January 2024, we wrote, “Could China Hack Our Electric Grid? – in 4 words – Yes and How Soon? The Real Question – Is Mayorkas in on it?” .

There was an article in the WSJ that reported that 492 major grid interconnectors and transformers could take down a major part of the U.S. grid. This has been part of their plan all along. Or the story China has an off-switch for America, and we aren’t ready to deal with it. – The Hill.

Long-Term Consequences for China’s Market Dominance

The loss of trust has been catastrophic for China’s wind and solar sectors. What began as economic advantages—low costs and rapid scaling—has morphed into liabilities amid geopolitical tensions. Analysts predict a 20-30% drop in Chinese export market share by 2030 as Western buyers prioritize security over savings.

This shift not only boosts competitors but also stifles innovation in China, as restricted access to global tech hampers R&D. Ironically, China’s push for “green” energy security at home—through massive domestic renewables buildout—has highlighted its vulnerabilities abroad.

As the world bifurcates into two markets, one focused on net-zero, the renewable market is fragmenting into trusted alliances, leaving China isolated. The other path will be a balanced implementation of energy sources and new trading blocks, removing China’s dominance. The lesson is clear: in an era of cyber threats, trust is the ultimate currency, and once lost, it’s hard to regain. As Secretary Burham stated above, we are prioritizing secure supply chains and reliable baseload to unleash American energy! This will have a long-term impact on the Chinese markets for manufacturing energy products.

This erosion of confidence highlights a broader geopolitical reality: Renewable energy isn’t just about sustainability; it is also about sovereignty. For China, the hidden radios and backdoors may have secured short-term gains, but they have ultimately cost the long game in wind and solar dominance.