China proposes export controls on solar tech

China is contemplating export controls on 12 technologies crucial to solar equipment production, citing potential national security risks, according to a recent ministry of commerce statement. The proposed revisions to the export control list also extend to artificial intelligence and biotechnology sectors. The nation's ministry of commerce stated that enhanced oversight is necessary due to the growing utilization of solar technologies in critical domains such as aerospace and national defense.

Early discussions between Chinese officials and manufacturers about these potential restrictions on advanced solar panel manufacturing technologies were reported in April to the Reuters agency, a development that could impact US firms like Tesla's plans for expanding production within the United States.

Beijing has also imposed limitations on solar-manufacturing technology exports to India, as reported by Reuters. Analysts believe China's move is aimed at maintaining its technological supremacy, as India strives to establish a robust domestic manufacturing sector and diminish its reliance on Chinese supplies. The export controls are intended to mitigate the risks of technologies spiraling out of control or being disseminated improperly, while simultaneously promoting regular international exchanges and technological cooperation, according to the ministry.

Exporters will now be required to register specific overseas technology transfers until the export-control catalog is officially updated. Public consultation on the proposal is set to conclude on November 15.

The restrictions include technologies used for manufacturing certain thin wafers, perovskite and tandem solar cells, as well as large-scale fluidized-bed polysilicon production methods. Perovskite represents an innovative technology, promising enhanced conversion efficiency. Tandem cells, which integrate perovskite and silicon layers, are designed to capture a broader spectrum of sunlight.

Fluidized-bed technology for producing polysilicon, a fundamental component for solar panels, is reported to be more cost-effective and energy-efficient compared to the prevalent Siemens process. China would also impose, albeit not prohibit, restrictions on the export of advanced solar cell manufacturing technologies, including TOPCon, HJT, and XBC.