China's recent tightening of controls on the overseas transfer of solar manufacturing technology may hinder the expansion plans of U.S. companies like Tesla. Global firms increasing solar investments to meet the rising power demands of AI data centers are also affected.
On October 16, China's Ministry of Commerce and Ministry of Science and Technology announced a revision to the 'List of Technologies Subject to Export Ban and Export Restrictions.' The updated list adds 40 technology items across AI, biopharmaceuticals, and solar sectors. Among these, 14 items will be subject to an export ban, while 26 will face export restrictions. The list is set to be finalized after a public consultation period ending on November 15.
In the solar sector, 12 technologies are included in the management scope. Technologies such as ultra-thin silicon wafers, perovskite and tandem solar cells, and fluidized bed polysilicon production methods are expected to be among those banned from export.
Tesla, the American electric vehicle manufacturer, is anticipated to be one of the most directly impacted companies. According to Reuters, Tesla has been negotiating to purchase approximately $2.9 billion worth of manufacturing equipment from Chinese firms to expand its solar manufacturing capabilities in the U.S. CEO Elon Musk has set a goal to establish an annual solar production capacity of 100 gigawatts (GW) in the U.S. by the end of 2028. However, changes in Chinese policy are expected to disrupt Tesla's plans.
Companies like Google and Amazon are also investing in solar energy to secure the power needed for expanding their AI data centers. However, their efforts to incorporate Chinese technology for solar equipment expansion have now become unfeasible.
China has stated that the purpose of these measures is to safeguard national security and prevent technology leaks. Given that solar manufacturing technology is also utilized in sensitive areas such as aerospace and defense, there is a need to manage the overseas transfer of core technologies.
Among the 40 technologies included in the list, the AI sector encompasses large language models (LLMs), AI agents, computing clusters, and information processing technologies. In the biopharmaceutical sector, technologies related to cell and gene therapy, nucleic acid-based medicines, and pathogenic microorganisms are also listed.
* This article has been translated by AI.
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