Donald Trump, the President of the United States, has signed an executive order banning the purchase and installation of foreign power grid equipment that could pose a national security threat. This move comes as Trump ramps up pressure on China ahead of Chinese President Xi Jinping's visit to the U.S. next month.
On August 26, Bloomberg and Fox News reported that Trump signed an executive order restricting the purchase, import, and installation of large-scale foreign power system equipment that could threaten the security of the U.S. power grid. Trump explained that foreign power equipment could endanger critical U.S. infrastructure through cyberattacks, remote manipulation, or supply chain disruptions.
The executive order could apply to a wide range of power grid equipment, including transformers, generators, grid-connected inverters, battery energy storage systems (ESS), turbines, and industrial control systems. Notably, related software, firmware, and remote access capabilities may also be subject to regulation. Furthermore, if the Secretary of Energy determines that already installed foreign equipment poses a risk, they may require isolation, monitoring, separation, replacement, or removal. The Secretary of Energy is also tasked with consulting with the Secretary of Defense and other relevant departments to issue related regulations within 120 days.
While the order does not explicitly name China, it is widely interpreted as targeting Chinese power equipment. U.S. experts have raised concerns about cybersecurity risks associated with Chinese energy equipment, particularly after discovering undocumented communication devices in some Chinese solar inverters last year. There are fears that such equipment could be exploited to gain unauthorized access to the power grid or be manipulated remotely.
This action aligns with Trump's strategy to increase pressure on China ahead of Xi's visit scheduled for September 24. Earlier, Bloomberg reported that the U.S. is considering imposing an additional 7.5% tariff on Chinese products due to concerns over China's excess production capacity. The U.S. has been conducting an investigation under Section 301 of the Trade Act regarding China's overproduction issues and is reportedly considering releasing the findings before the summit.
Additionally, sanctions against Iran are emerging as another tool to pressure China. The U.S. is set to announce new sanctions this week aimed at further isolating Iran economically, including secondary sanctions that could target third-country companies and institutions doing business with Iran. Reports indicate that companies based in China and Hong Kong may also be included in these sanctions.
Thus, the Trump administration appears to be pursuing a dual strategy of pressure and negotiation with China ahead of Xi's visit. China is expected to respond by maintaining its cooperation with Iran while avoiding direct confrontation with the U.S., focusing on preserving its competitiveness in key industrial sectors. As a result, issues such as power grid security, advanced technology, overproduction, and sanctions against Iran are likely to emerge as key topics during the upcoming U.S.-China summit.
* This article has been translated by AI.
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