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(Bloomberg) — Chinese inverter manufacturer Sungrow Power Supply Co. tumbled on Wednesday following a report that the US regulator is drafting a ban on imports due to national security concerns.
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The stock plunged as much as 20% in Shenzhen, the steepest intraday drop since April last year, after Reuters reported that the Federal Communications Commission is considering a restriction on new foreign models. The proposed ban addresses concerns that China might use its inverters to disrupt power supplies, and could become effective as early as this year, Reuters said, citing unnamed people with knowledge of the matter.
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Sungrow is one of the world’s largest producers of inverters — devices that converts DC electricity into AC electricity — and reported global shipments of 143 gigawatts in 2025, according to its annual report. The company, which also manufactures energy storage systems, is heavily reliant on international markets, with 60% of its revenue generated outside China last year.
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Some 30%-40% of the company’s gross profit on inverter sales came from the US in 2025, according to an estimate by Citigroup Inc.
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The bank’s analysts said in a note that Sungrow doesn’t seem overly worried by the proposed ban because the devices it exports to the US don’t have remote communication capabilities and perform only the inverter function, a configuration that has been verified by the US Department of Energy.
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Sungrow remains focused on ongoing developments, and at this stage has no further comment, the company said in written reply to a request for comment.
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Citigroup said the ban could harm the US because 90% of inverters in utility-scale projects come from, primarily Chinese, foreign companies. That puts the ban in doubt, or could involve a long grace period before it’s implemented.
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—With assistance from Kelly Li.
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English (US)