Facing Trade Protectionism Abroad, China's Wind Power Industry Must Find Opportunities Amid the Risks (AI Translation)
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文｜财新周刊 赵煊
By Caixin Weekly's Zhao Xuan
继电动汽车之后，新一轮欧盟反补贴调查又瞄向了中国风电产业。
Following electric vehicles, a new round of EU anti-subsidy investigations has targeted China's wind power industry.
“欧盟绝不能重蹈失去光伏制造业的覆辙。”4月9日，欧盟委员会副主席玛格丽特·韦斯塔格（Margarethe Vestager）宣布，欧盟将依据其《外国补贴条例》（下称FSR）对中国风机制造商展开调查，并称已对西班牙、希腊、法国、罗马尼亚和保加利亚等五国市场上的中国风机供应商开展调查。
"The EU must not repeat the mistake of losing its photovoltaic manufacturing industry," declared Margrethe Vestager, Vice President of the European Commission, on April 9. The EU will initiate an investigation into Chinese wind turbine manufacturers under its Foreign Subsidies Regulation (FSR), and has already started probing Chinese wind turbine suppliers in the markets of Spain, Greece, France, Romania, and Bulgaria.
欧洲风能协会主席贾尔斯·迪克森（Giles Dickson）同日表示，中国风机在欧洲的报价比欧洲本地制造的风机低50%，且最多可延期三年付款，“这意味着中国制造商免费提供涡轮机，直到风电场运营商获得三年收入。”他说。
Giles Dickson, the chairman of the European Wind Energy Association, stated on the same day that Chinese wind turbines are offered in Europe at prices 50% lower than those manufactured locally in Europe, and payment can be deferred for up to three years. "This means that Chinese manufacturers are essentially providing turbines for free until the wind farm operators have generated three years of revenue," he said.
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- The EU has launched an investigation into Chinese wind turbine manufacturers under its Foreign Subsidies Regulation (FSR), citing concerns about subsidies and market distortion. This follows similar actions against other Chinese industries like electric vehicles and photovoltaics.
- Chinese wind turbines are reportedly priced 50% lower than European-made ones in the EU market, with payment terms extending up to three years, which is seen as a significant competitive advantage that the EU attributes to subsidies.
- In response, China argues that its competitiveness in the wind energy sector is not subsidy-driven and criticizes the EU for protectionism. The ongoing dispute highlights broader geopolitical tensions and challenges in global trade relations between China and the EU.
The European Union has initiated a new round of anti-subsidy investigations targeting China's wind power industry, following previous probes into electric vehicles. Margrethe Vestager, Vice President of the European Commission, emphasized the importance of not losing the EU's manufacturing edge in renewable energy as it did with photovoltaics. The investigation will focus on Chinese wind turbine manufacturers who allegedly offer their products at significantly lower prices in Europe, potentially due to subsidies [para. 1].
Giles Dickson from the European Wind Energy Association highlighted that Chinese turbines are sold at half the price of European ones and often come with deferred payments for up to three years. This pricing strategy is seen as providing turbines "for free" until revenue is generated by wind farm operators [para. 1]. In contrast, He Yadong from China's Ministry of Commerce defended Chinese manufacturers, denying subsidy-driven competition and accusing the EU of protectionism [para. 2].
The EU Chamber of Commerce in China criticized the EU’s use of its Foreign Subsidies Regulation (FSR) to target Chinese companies, arguing it promotes economic coercion and protectionism. They claim this approach disrupts global market order and hinders innovation and development in wind power, impacting global climate change efforts [para. 3].
China has become a dominant player in the wind power sector globally, holding about two-thirds of the market share in turbine manufacturing. The country also leads in annual new installed capacity for wind power, adding 77 gigawatts in 2023 alone—about 60% of global installations [para. 4]. Despite this dominance, Chinese companies face challenges such as domestic price wars which push them to seek more profitable overseas markets like Brazil and India [para. 5][para. 6].
Chinese firms have made significant technological advancements, producing offshore turbines up to 18 megawatts compared to 15 MW by Western manufacturers. However, they still face hurdles like intense competition and trade barriers such as anti-dumping duties imposed by the EU on components like turbine towers [para. 7][para. 8].
In response to these challenges and opportunities, Chinese companies are exploring strategies for international expansion despite geopolitical tensions. They aim to leverage their cost advantages and rapid production capabilities while navigating complex certification processes and establishing credibility in foreign markets [para. 9][para. 10].
Overall, while China's wind power industry is poised for global expansion with significant technological and production capacities, it must overcome substantial regulatory and market-entry obstacles posed by established players and trade policies in target markets like Europe [para. 11].
- Yunda Co., Ltd.
运达股份 - Summary： Yunda Co., Ltd. (300772.SZ) is mentioned in the context of its rapid response capabilities in the wind energy sector. The company's executive general manager, Cheng Chenguang, highlighted that Yunda could deliver a large wind energy project in Serbia within three months, compared to the 18 months required by another foreign manufacturer. This capability led to Yunda being chosen for the project, showcasing its efficiency and competitiveness in the European market.
- Goldwind Technology
金风科技 - Summary： Goldwind Technology, a leading Chinese wind turbine manufacturer, has been actively expanding internationally. It entered the Brazilian market in 2016 and achieved its first whole machine supply project there in 2021 with the LDB wind power project. Goldwind is set to further solidify its presence with the construction of its first overseas factory in Brazil, aiming for a 25%-30% market share in Brazil's wind turbine market.
- Mingyang Smart Energy
明阳智能 - Summary： Mingyang Smart Energy is the first Chinese wind turbine manufacturer to enter the European offshore wind market. In April 2022, it supplied turbines for Italy's first offshore wind project and listed on the London Stock Exchange in July 2022 to access the UK market.
- Electric Wind Power
电气风电 - Summary： The EU has launched an anti-subsidy investigation into Chinese wind turbine manufacturers under its Foreign Subsidy Regulation (FSR), citing concerns over competitive pricing and extended payment terms offered by Chinese companies. This move reflects the EU's protective stance towards its local industries, amidst fears of losing dominance in the renewable energy sector similar to previous experiences with photovoltaics. China defends its position, arguing that its advantages are not subsidy-driven but due to competitive industry development.
- Titan Wind Energy
天顺风能 - Summary： Titan Wind Energy, a leading Chinese wind turbine tower manufacturer, is subject to anti-dumping tariffs imposed by the EU since December 2021. These tariffs range from 7.2% to 19.2%. Despite the tariffs, Titan Wind Energy's export prices to the EU remain about 10% cheaper than local European companies.
- Taisheng Wind Energy
泰胜风能 - Summary： Taisheng Wind Energy, a leading Chinese wind turbine tower manufacturer, faces tariffs ranging from 7.2% to 19.2% imposed by the EU due to allegations of low-price sales. Despite these tariffs, the cost of Taisheng's towers exported to the EU remains about 10% cheaper than those sold by local European companies.
- Dajin Heavy Industry
大金重工 - Summary： Dajin Heavy Industry, mentioned in the context of European anti-dumping duties on Chinese wind power equipment, is one of the leading Chinese manufacturers impacted by these tariffs. The company is involved in producing key components like wind turbine towers and has been subject to tariffs ranging from 7.2% to 19.2%, which are imposed by the EU due to allegations of selling below cost. Despite these tariffs, Dajin Heavy Industry's products remain competitively priced in the European market.
- April 9, 2024：
- The EU announced an investigation into Chinese wind turbine manufacturers under its Foreign Subsidies Regulation (FSR).
- April 11, 2024：
- China's Ministry of Commerce responded, defending the competitive edge of Chinese wind power companies and criticizing the EU's protectionism.
- February 16, 2024：
- The European Commission initiated an investigation into CRRC Sifang, a subsidiary of the world's largest rolling stock manufacturer, CRRC, for alleged government subsidies in a Bulgarian tender.
- March 26, 2024：
- CRRC Sifang withdrew from the bidding for the Bulgarian project, leading to the retraction of the EU investigation.
- December 2021：
- The European Union imposed tariffs on wind turbine towers imported from China, ranging from 7.2% to 19.2%.
- 2007：
- China exported its first wind turbine unit to Chile.
- 2015：
- China exported its first megawatt-class wind turbine to Europe.
- April 2022：
- Mingyang Smart Energy became the first Chinese full-set wind turbine manufacturer to enter the European offshore wind market, supplying turbines for Italy's first offshore wind project.
- July 2022：
- Mingyang Smart Energy was listed on the London Stock Exchange, aiming to penetrate the UK market.
- September 2023：
- Goldwind sought partnerships for wind projects in Spain and signed a memorandum of understanding with Banco Santander of Spain.
- 2011：
- The European Union conducted "dual anti-" (anti-subsidy and anti-dumping) investigations into China's photovoltaic and wind power industries.
- 2023：
- Goldwind Technology led the world with new wind turbine installations totaling 16.4 gigawatts, but its overseas new installations were only 0.75 gigawatts.
- November 2021：
- CGN's Brazil LDB wind power project was completed and connected to the grid, marking Goldwind's first full turbine supply project in Brazil.
- 2023：
- Goldwind also supplied turbines for CGN's TN wind power project in Brazil, which commenced operations.
- 2024：
- Jinfeng Global's first overseas factory is expected to be completed and operational in Brazil.
- 2013：
- Envision Energy entered the Indian market.
- 2022：
- Envision Energy ranked first in market share in India.
- 2023：
- Envision Energy maintained its top market share position in India.
- 2019：
- Tianshun Wind Energy acquired the production center of Ambau in Cuxhaven, Germany, which primarily manufactures foundations for offshore wind turbines.
- July 2023：
- Tianshun Wind Energy announced an investment of 1.876 billion yuan to expand new production capacities in Germany.
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