Europe Cuts Off Funding for Chinese Solar Inverters

The European Commission has halted funding for solar energy projects that utilize components from Chinese companies, including Huawei, due to concerns over potential nation-state hacking. This decision impacts projects funded by the European Investment Bank and its partner banks. The move is driven by fears that Chinese solar inverters could be compromised by state-aligned threat actors, posing a significant cybersecurity risk. Specifically, the concern is that these components could be exploited to disrupt critical infrastructure or steal sensitive information¹. The European Commission's decision reflects a growing awareness of the geopolitical implications of relying on technology from foreign nations with a history of cyber aggression. As a result, the calculus for securing critical infrastructure has shifted from solely focusing on criminal activity to also considering nation-state threats. This development matters to cybersecurity practitioners because it highlights the need to carefully evaluate the potential risks associated with using components from companies linked to nations with a history of state-sponsored hacking.