Huaming Power Equipment Co Ltd

US President Donald Trump signed Executive Order 14420 on August 26 local time, declaring a national emergency for the US bulk power system and tightening procurement, import, and installation of foreign-manufactured grid equipment on national security grounds. This marks another round of similar restrictions following Executive Order 13920 in May 2020. Citing the International Emergency Economic Powers Act and the National Emergencies Act, the order prohibits US companies from purchasing, importing, or installing certain foreign-manufactured bulk power system equipment, including substation transformers, large generators, industrial control systems, battery energy storage systems, and related software. It also requires the Department of Energy to formulate implementation rules within 120 days and propose revisions to procurement regulations within 180 days. Chinese Foreign Ministry spokesperson Lin Jian responded that China consistently opposes the practice of overstretching the concept of national security to suppress companies from other countries. Affected by the news, China's A-share power equipment sector came under pressure, with shares of Sieyuan Electric, JSTI Group, and Mingyang Electric falling. Several listed companies responded that the executive order's detailed rules have not yet been implemented, and their direct revenue exposure to the US is limited, making the impact difficult to assess. This executive order continues restrictions on Chinese power equipment by Europe and the US over the past three months, following the EU's earlier restriction on public funding support for inverters and the US FCC's inclusion of grid-connected power inverters under regulation.