Jinko Solar Co.’s decision to sell a controlling stake in its Florida manufacturing facility marks the latest chapter in a multi-billion-dollar retreat from the United States by Chinese clean technology firms. The move comes as Shanghai-based manufacturers grapple with an increasingly restrictive policy environment and the potential loss of lucrative federal incentives.
The Shanghai-based solar giant announced on Friday that it would sell a 75% stake in its Florida panel facility to FH Capital, a private equity fund. In a corporate filing, Jinko noted the decision was prompted by a need to comply with “US domestic manufacturing regulations” and to “minimize operational risks.”
The divestment follows a broader trend of Chinese firms scaling back or exiting the US market entirely. According to research from Rhodium Group, China-based companies scrapped approximately $2.8 billion in planned US manufacturing projects in 2025. As of late March, more than half of all proposed Chinese clean-tech investments announced since 2022 have been cancelled, paused, or delayed.
“Jinko’s decision underscores the enormous challenges facing Chinese clean-tech firms operating in the US,” said Li Shuo, director of the China Climate Hub at the Asia Society Policy Institute. He described the move as a “chilling message to anyone that wishes to come and build factories in the US.”
The reversal follows a surge in interest during the Biden administration, when tax credits lured Chinese firms to announce $5.6 billion in investments in 2023. However, President Donald Trump’s administration has since rolled back many of these incentives. Crucially, last year’s tax legislation introduced stringent new hurdles for manufacturers tied to “foreign entities of concern.”
Under the current policy framework, it has become nearly impossible for factories controlled by Chinese companies to qualify for the manufacturing tax credits that are vital for commercial viability. This puts Chinese-owned plants at a severe disadvantage against domestic rivals like Arizona-based First Solar Inc., which expects to receive over $2 billion in credits this year.
Jinko’s retreat mirrors similar moves by other major players in the sector:
- Trina Solar Co. sold a majority stake in its Texas assembly plant in 2024.
- JA Solar Technology Co. saw its Arizona plant acquired by Corning Inc. last year.
A Jinko spokesperson stated the stake sale was intended to “optimize its overseas asset allocation” and “enhance flexibility and compliance” for long-term development in the US market.
