EU quietly moves to cut Chinese inverters from clean tech funding

The European Union is quietly shifting its strategy in dealing with China, moving away from public pronouncements towards more concrete actions. A significant development is the European Commission's plan to halt EU funding for clean technology projects that incorporate Chinese inverters. This decision, made without public announcement, signals a new approach in Brussels.

Inverters are crucial components in solar and wind energy systems, and Chinese companies, notably Huawei Technologies, hold a substantial share of Europe's installed solar capacity through these devices. The commission's intention is to prevent EU funds from supporting projects that rely on this technology and to restrict research collaborations under its Horizon program involving Chinese inverters.

This strategic pivot aligns with the EU's broader ambition to bolster its domestic clean energy manufacturing sector, which has been struggling against intense competition from Chinese companies. Furthermore, the move is influenced by growing security concerns across Europe, where China is increasingly viewed as a geopolitical rival. There are heightened fears that China could potentially disrupt European energy grids if bilateral relations deteriorate.

The new approach, characterized by "do more, say less," suggests a more pragmatic and less confrontational stance, aiming to achieve strategic objectives through subtle yet impactful policy adjustments rather than public declarations.

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do more, say less