China Energy Storage Potential US policy restrictions could hurt key players

Research evidence excerpt

China Energy Storage Potential US policy restrictions could hurt key players

2 July 2026

Equity Research Report

China Energy Storage EquitiesElectrical Equipment

Potential US policy restrictions could hurt key players China

◆ Potential restrictions on Chinese inverter imports could Corey Chan* (Reg. No. S1700518100001)

impact Chinese solar inverters and ESS players negatively Head, A-share Industrials & Renewables Research HSBC Qianhai Securities Limited

corey.chan@hsbcqh.com.cn

◆ However, we believe it is difficult to fully exclude Chinese +86 21 5066 2001

players from the US inverter market Gary Yao* (Reg. No. S1700525080001)

Analyst, A-share Industrials & Renewables Research

HSBC Qianhai Securities Limited

◆ We prefer Deye (Buy) over Sungrow (Buy); TPs unchanged gary.x.d.yao@hsbcqh.com.cn

+86 21 5066 2078

The US Federal Communication Commission (FCC) is drafting a ban on DunAnalyst,Wang*,A-shareCFA,IndustrialsCPA (Reg. &No.RenewablesS1700519060002)Research

imports of foreign inverters, according to a Reuters report dated 30 June 2026. HSBC Qianhai Securities Limited

dun.wang@hsbcqh.com.cn

According to the news, the ban could be applied to new foreign models of inverters +86 21 5066 2027

and could be published as early as 2026. In 2025, North America accounted for 8% Echo Zhang* (Reg. No. S1700525050001)

of global solar demand and c20% of global ESS demand. While details on the Analyst, A-share Industrials & Renewables Research

potential restrictions are not available, should they be enforced, we see potential echo.x.zhang@hsbcqh.com.cn

negative impacts on Chinese players exporting to this market. +86 10 5795 2314

It will be difficult for any market to exclude Chinese players totally, given the * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is