Major U.S. solar companies with Chinese connections are reaping benefits from the Inflation Reduction Act’s tax credits, despite growing scrutiny over potential national security risks. Senate Democrats have publicly praised these firms, including Canadian Solar, for their contributions to green energy initiatives, even as concerns arise about their ties to China’s Communist Party.
The Inflation Reduction Act has provided significant subsidies to alternative energy companies, with firms like Canadian Solar enjoying financial boosts. However, critics argue that these companies maintain strong links to China, with operations and assets heavily based in the country. Rep. John Moolenaar, chairman of the House Select Committee on the CCP, has raised alarms about the risks of U.S. federal subsidies being used by firms that may be influenced by Beijing.
Canadian Solar, founded by a Chinese entrepreneur and maintaining much of its assets in China, has received substantial government support, including a $250 million commitment to a 5GW module facility in Texas. Despite its U.S.-based operations, the company’s dependence on Chinese subsidies and manufacturing raises questions about its alignment with U.S. interests. The company’s leadership has expressed support for American manufacturing, yet its ties to Chinese state-backed entities remain a point of contention.
Moolena, along with other lawmakers, is pushing for measures to prevent subsidies from going to companies with links to the CCP, as seen in proposed legislation. These efforts reflect a broader concern about how China’s economic and technological strategies, including its dominance in the solar industry, may undermine U.S. national security and economic interests through business practices.