Shenzhen Energy Company has terminated its planned purchase of three US solar projects, after the deal had not gained Committee on Foreign Investment in the US (CFIUS) approval within the necessary time frame

The three power plants subject for acquisition were developed by San Francisco based Recurrent, and are all located in California.

Recurrent Energy is a wholly-owned subsidiary of Canadian Solar, and functions as Canadian Solar's US project development arm.

In late 2017, the US subsidiary of Shenzhen Energy, Shenmei Energy Investment Holdings, agreed to buy three firms partly owning the projects for US$232 million. But Shenzhen Energy said in a recent filing to the Shenzhen Stock Exchange that after many delays seeking CFIUS approval it was no longer proceeding.The deal was not explicitly blocked.

On a wider scale, since Donald Trump became US President the time required for the CFIUS process has been getting longer, and inward Chinese M&A has slowed.

The rules are going to get even tighter. In August, the US Senate approved a reform bill called the Foreign Investment Risk Assessment Modernization Act (FIRRMA), which aims to strengthen the review of foreign investment on a large scale. Under the terms, the Act gives CFIUS broader powers to review and possibly block foreign transactions on the grounds of national security, including minority investments that have been unrestricted.

In December 2016, Canadian Solar announced the commercial operation of the 200 MW Garland Solar Facility in California. Kern County-located Garland was developed by Recurrent Energy and is majority owned by Southern Company subsidiary Southern Power. Commercial operation of the 100MW Mustang solar power project in Kings County, California, began in August 2016. The Tranquillity solar project also began operation in 2016. Located in California's Central Valley, the Tranquillity solar power project produces enough clean electricity to power about 50,000 homes.