U.S. President Donald Trump has signed an executive order declaring a national emergency over foreign-made equipment used in the country’s electricity grid, citing potential cybersecurity, operational and national-security risks.
The order, signed on August 26, restricts the purchase, importation, transfer and installation of certain foreign-produced equipment used in the U.S. bulk-power system when the equipment is linked to entities considered security risks by the administration.
National Security Concerns
The White House says foreign-made grid equipment could potentially contain digital vulnerabilities, including backdoors that could allow unauthorized remote access or disruption of critical infrastructure.
The restrictions cover a wide range of equipment, including substation transformers, utility-scale inverters, battery-storage systems, generators, circuit breakers, protective-relaying equipment and industrial control systems, as well as associated software, firmware and remote-access capabilities.
The administration has increasingly focused on Chinese technology as a potential security risk. The move follows reports that U.S. experts discovered unauthorized communication devices in some Chinese-made solar inverters, raising concerns about the possibility of remote interference with electricity infrastructure.
Existing Equipment Could Also Face Restrictions
The executive order does not necessarily apply only to new purchases. The Energy Secretary is authorized to impose conditions on foreign-manufactured equipment already operating in the U.S. if it is determined to pose an unacceptable risk.
Depending on the assessment, authorities could require equipment to be identified, isolated, monitored, secured, disconnected, replaced or removed. The administration must consider electricity reliability, safety, replacement availability and continuity of essential services before ordering such measures.
Energy Department Given Key Role
The Energy Department will develop and implement the detailed rules governing the restrictions. The order requires the department to work with other federal agencies, including national security and intelligence authorities, to identify equipment that could pose risks to the grid.
The administration says the policy is particularly important as electricity demand grows because of artificial intelligence, data centers, advanced manufacturing and defense production.
Broader U.S.-China Technology Tensions
The decision represents another step in Washington’s broader effort to reduce dependence on foreign technology considered strategically vulnerable, particularly products connected to China.
The European Commission has also moved against Chinese-made solar inverters in publicly funded energy projects, reflecting growing Western concerns about the security of energy infrastructure and connected digital equipment.
The new U.S. restrictions could increase demand for domestically produced grid equipment and alternative suppliers, while potentially raising costs for utilities and companies that rely on imported components.
For now, the administration is expected to focus on identifying specific equipment and foreign entities that meet the security criteria before implementing the full scope of the restrictions.
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