The United States is tightening security requirements for foreign-made equipment used in its bulk-power system, adding another factor for international electrical equipment suppliers to consider when entering the U.S. market.
On August 26, 2026, the White House issued an executive order declaring a national emergency related to the security of the U.S. bulk-power system (Federal Register doc. 2026-17843). The order cites cybersecurity, operational and supply-chain risks associated with certain foreign-produced equipment.
Transformers and UPS systems included
The order covers equipment used in bulk-power system substations, control rooms and power-generating stations.
The listed equipment includes substation transformers, grid-connected inverters, battery energy storage systems, UPS systems supporting critical infrastructure, voltage regulators, high-voltage circuit breakers, protective relaying and industrial control systems. Associated software, firmware and remote-access capabilities may also be considered when assessing risk.
The restrictions are not a blanket ban on all foreign-made electrical equipment. The order directs the Secretary of Energy to determine which transactions involving equipment connected to a Covered Foreign Entity pose unacceptable risks. The Secretary may also establish conditions or create a list of pre-qualified equipment and vendors.
China responds
China's Ministry of Foreign Affairs criticized the order on August 27, arguing that national-security concerns should not be used to create discriminatory restrictions on foreign companies.
The response adds another layer to the ongoing discussion around market access, supply-chain security and international electrical equipment trade.
What it means for electrical equipment suppliers
The policy adds another factor to the qualification process for suppliers targeting the U.S. power market.
Beyond electrical specifications, customers may increasingly look at:
- Manufacturing location
- Supplier ownership and control
- Cybersecurity
- Remote access capabilities
- Software and firmware
- Supply-chain security
- Long-term maintenance and replacement
The policy comes as electricity demand continues to grow from data centers, AI infrastructure and advanced manufacturing, increasing the importance of grid reliability and equipment availability.
For transformer, UPS and voltage-regulation manufacturers, export markets are becoming more differentiated. Technical specifications remain important, but compliance, traceability and supply-chain documentation can also affect equipment selection.
A note for non-U.S. suppliers and their buyers
The U.S. is one market among many. Grid investment and equipment demand continue to grow across Asia, the Middle East and Africa, where local grid conditions, reliability requirements and project economics remain important factors in equipment selection.
For suppliers such as TAFENG that serve these regions, the U.S. order is more of a signal than a direct constraint. Export projects increasingly involve more than electrical specifications. Product origin, technical documentation, firmware, remote access and supply-chain traceability can all become part of the supplier qualification process. TAFENG supplies isolation transformers, low-frequency UPS and voltage stabilizers for projects in hospitals, factories and other industrial applications outside the U.S.
