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China 'strongly opposes' EU move to bar funding for projects using Chinese inverters
Finance

China 'strongly opposes' EU move to bar funding for projects using Chinese inverters

Published by Global Banking & Finance Review

Posted on May 7, 2026

1 min read

· Last updated: May 7, 2026

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China Rejects EU Move to Restrict Funding for Projects Using Chinese Inverters

China's Response to EU Funding Restrictions

EU Commission's Recommendation

BEIJING, May 7 (Reuters) - China's commerce ministry on Thursday expressed strong opposition after the European Commission recommended restricting ⁠the use ​of EU funds for projects involving power ​inverters from "high-risk suppliers" that include China.

China's Official Statement

Firm Opposition to EU Policy

"China refuses to accept and firmly opposes it," a spokesperson for the ministry said in a statement, adding that China will monitor and assess the EU policy and take measures to safeguard Chinese firms' interests.

Call to End Discriminatory Practices

"China urges the European side to immediately stop the stigmatization of China as a 'high-risk country' and abandon unfair and discriminatory practices against Chinese products," the spokesperson said.

Reporting Credits

(Reporting by Yukun Zhang, Shi Bu and Liz Lee)

Key Takeaways

  • The EU move targets cybersecurity risks by phasing out inverters from China, Russia, Iran and North Korea in EU‑funded energy projects, with full enforcement by 2027 and transitional exemptions. (euronews.com)
  • China refutes being labeled a high‑risk supplier, urging the EU to stop stigmatizing Chinese firms and warning it will take measures to protect their interests. (euronews.com)
  • The inverter market is heavily dominated by Chinese suppliers—approximately 70–80 % globally—and the EU believes alternative suppliers have capacity to meet demand with minimal cost impact. (scmp.com)

References

Frequently Asked Questions

What action did the European Commission take regarding Chinese inverters?
The European Commission recommended restricting the use of EU funds for projects involving power inverters from high-risk suppliers, including those from China.
How did China respond to the EU's proposed restrictions?
China expressed strong opposition, stating it refuses to accept the EU's policy and will take measures to safeguard Chinese firms' interests.
Why does China oppose being labeled as a 'high-risk country' by the EU?
China believes the designation is unfair and discriminatory against Chinese products and urges the EU to stop stigmatizing China.
What actions might China take if the EU proceeds with the restrictions?
China stated that it will monitor and assess the EU's policy and take appropriate measures to protect Chinese companies.
Which ministry in China issued the statement on the EU's policy?
China's commerce ministry issued the statement opposing the EU's recommendation.

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