BEIJING/LOS ANGELES — Chinese officials have held initial talks with providers of equipment to make solar panels as they consider limiting exports of the most advanced technology to the US, said five people with knowledge of the consultations.

Such a clampdown would risk investments by US firms and set back a race for space-based computing, as China, estimated to make more than 80 per cent of the world's solar panel components, is also home to the top 10 suppliers of equipment to make solar cells.

No rule has been finalised, and the talks have not advanced to the stage of canvassing formal feedback from an industry grappling with severe overcapacity after years of aggressive expansion, two of the sources said.

China's commerce ministry and its state council, or cabinet, did not immediately respond to faxed requests for comment from Reuters.

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If adopted, step could threaten US firms' plans to expand

If adopted, such a move could threaten plans by US firms, such as Tesla, to build new factories or expand existing ones in efforts to boost local production.