Trump declares national emergency over foreign-made equipment in power grid

On August 27, 2021, US President Donald Trump declared a national emergency regarding foreign-made equipment in the United States' power grid. He argued that the increasing demand for power has made the system vulnerable to attacks from hostile governments. The executive order prohibits companies from purchasing, importing, or installing certain foreign-made components in the bulk-power system, which includes the network of high-voltage lines, substations, and power plants that transmit electricity across the nation.

Trump emphasized that the surge in AI data centers and other advanced technology projects has increased America's reliance on a stable electricity supply. If the grid were to fail, the consequences would be far more severe than in the past.

The order also cautioned that foreign-built equipment might contain concealed digital "backdoors" in their software, enabling other countries to control or shut down the equipment. The directive applies to nations under US arms embargoes, sanctions, or those the administration perceives as adversaries to American interests. Although China is not explicitly mentioned, Chinese-made grid components have long been a concern for US security officials.

The administration has previously employed a similar strategy, discouraging allies from incorporating Huawei, a Chinese telecom supplier, into new mobile phone networks, and accusing Beijing of the potential for forced espionage or sabotage. Huawei and ZTE were later sanctioned by US regulators.