The concealed modules were detected over the past nine months in inverters and battery systems supplied by multiple Chinese manufacturers. These discoveries were made by specialists tasked with performing rigorous hardware checks before integrating equipment into national power networks. Their findings have intensified fears of Chinese interference in critical Western infrastructure, both in the U.S. and Europe.
Solar inverters typically feature remote connectivity capabilities via cellular networks, and U.S. utility companies usually deploy robust firewalls to block unauthorized external communication—especially with foreign actors such as China. However, experts say the problematic components were found to bypass these protections, creating an avenue for remote deactivation or manipulation of the inverter’s settings.
“This essentially means there’s a built-in method to physically disrupt the grid,” one source told Reuters. A particularly alarming incident occurred in November, when inverters across the U.S. were reportedly shut down remotely from China. The number of affected devices and the full scale of the damage remains unclear, but the episode underscored the risks of relying on Chinese-manufactured technologies in the West’s energy systems. It is still unknown whether the disruption was a deliberate "trial run" or a malfunction.
The potential for Chinese infiltration of U.S. strategic infrastructure has been a longstanding concern, exacerbated by escalating tensions between the two superpowers. Beijing’s dominant role in the global supply of key battery and high-tech components is increasingly seen as a national security vulnerability by Western analysts.
Under Chinese law, domestic companies are obligated to cooperate with state intelligence agencies—raising the possibility that the Chinese government could gain access to foreign power systems through Chinese-made devices. This has heightened suspicions that Beijing could exert remote influence or even sabotage foreign electrical grids.
Huawei, the Chinese tech giant, is reportedly the primary supplier of the suspect inverters. The company was banned from U.S. telecom networks in 2019 during President Trump’s first term due to national security concerns. Huawei was accused of embedding “backdoors” in its 5G equipment to enable potential surveillance by the Chinese government—a charge the company has denied.
Concerns extend beyond the U.S., as Britain and other European nations are also believed to be vulnerable. The British government is currently reviewing Chinese technology in its renewable energy infrastructure, including the potential threats posed by Chinese-manufactured inverters used in solar farms and wind turbines.
“In the past, shutting off Chinese inverters wouldn’t have caused much disruption in Europe. But now, the critical mass is much greater,” said Philipp Schröder, CEO of German solar energy firm 1Komma5, which avoids using Huawei inverters due to security concerns.
The controversy follows recent security incidents, including the 2023 Chinese spy balloon that breached U.S. airspace, reigniting debates in Washington over the espionage risks posed by Chinese tech. Despite bipartisan calls to ban Chinese-made electronics, technologies, and even social media platforms, efforts to reduce reliance on Chinese supply chains have proved difficult due to deep economic interdependence.
In parallel with the technological rivalry, U.S. lawmakers this week introduced a new legislative proposal that would require American manufacturers to embed tracking technologies in AI microchips. The “CHIP Security Act” is designed to monitor the export of AI chips, following reports that U.S.-made components have been illicitly shipped to China, violating export restrictions.
Responding to Reuters’ report, a spokesperson for the Chinese embassy in Washington stated:
“We oppose the politicization of ‘national security’ and the baseless smearing of China’s infrastructure achievements.”