Shares of Chinese cleantech companies rose sharply on Thursday as investors anticipated a change in U.S. policy. Investors are counting on the Democrat-controlled US Congress to step up support for clean energy, which would benefit industries where Chinese companies are major global suppliers. Democratic victories in the midterm elections could pave the way for renewed tax breaks for renewable energy and tighter oversight of efforts to roll back emissions regulations. Morningstar analyst Cheng Wang said the US remains the largest and most profitable market for solar and energy storage systems, with Chinese suppliers dominating both sectors. Lowering trade barriers could create significant growth potential, he said, and the current uptick is more about sentiment than specific proposals. The US maintains a 50% Section 301 tariff on Chinese solar products and a 25% tariff on Chinese grid-scale batteries. The Shanghai Renewable Energy Star Index rose 6.46% in morning trading. In the US, shares of renewable energy companies also strengthened after the Democrats' victory in the election, seen as a referendum on Trump, who criticized wind and solar energy for being unreliable and expensive. Inverter maker Sungrow Power added 7.45%. The Reuters news agency previously reported that the Trump administration may ban foreign revolutionaries due to fears of Chinese interference in the power grid. Citi analyst Pierre Lau noted that history points to the potential for further rally growth, recalling the impact of Joe Biden's 2020 victory, which saw clean energy stocks rise for months. Jefferies analyst Alan Lau said cleantech is also benefiting from a shift in business away from artificial intelligence and towards renewable energy.