China Solar Export Restriction Proposal Weighs On Tesla And Canadian Solar Shares

China proposed adding 12 photovoltaic manufacturing technologies to its export-control list, targeting equipment used for polysilicon, silicon wafers, and advanced solar cells. Under the proposal, export bans would apply to perovskite, tandem cell, thin-silicon wafer, and fluidized-bed polysilicon tech, while technologies such as TOPCon, HJT, and back-contact would face restrictions. Shares of Tesla, Inc. (TSLA) closed down 2.13% at $354.70, while Canadian Solar Inc. (CSIQ) dropped 7.19% to $9.81.

Chinese regulators cited rising national security risks, pointing to solar technology applications in aerospace, defense, and high-security infrastructure. The potential restrictions create uncertainty for US solar expansion efforts. Tesla previously discussed about $2.9 billion in equipment purchases with Chinese suppliers to support its goal of building 100 gigawatts of US solar manufacturing capacity by 2028. Canadian Solar uses HJT technology at its Indiana plant, which forms a core piece of its strategy to build localized US production.

Market participants should watch for final rulings on export control thresholds, as Chinese officials stated that tech below specified limits will remain freely exportable. Investors will also follow whether affected companies face delays in securing machinery permits or need to modify their technology roadmaps.