Tidsskriftsartikel

Wind Wars

China is running full steam ahead in pursuit of leadership in the 21st century’s most important global industries. Can Europe keep pace?

Across a long line of global industries, from telecommunications to shipping, China is in direct competition with the European Union. Even when it comes to green industries, like the wind power sector, despite the necessity to cooperate with Beijing to address climate change, China and Europe are also fierce industrial competitors.

In a new long form article for The Wire China, DIIS senior researcher Luke Patey, unpacks the China challenge for Denmark’s and Europe’s wind industry. Exploring the relationship and conflicts of interests between companies in the European wind supply chain, the article poses the broader question of whether the EU can protect and promote both its global corporations and small business owners as pressure from China increases.

Wind is big business. To help meet the Paris Climate targets, wind energy alone needs to increase from representing 6 percent of global electricity generation in 2018 to 35 percent by 2050. Annual combined wind power investments in onshore and offshore turbines will need to grow three-fold to over $200 billion per year until 2030 and over $300 billion per year over the remaining period to 2050.

Wind is also big politics. The countries that drive renewable technology and industrial development forward will reap tremendous economic gains and considerable geostrategic and geopolitical clout. 

But small states like Denmark can continue to be at the forefront of the industry if they compete on a level playing field with their growing Chinese competition. The Chinese wind industry has grown so quickly that, according to Bloomberg New Energy Finance, China’s leading wind turbine maker, Goldwind, surpassed Denmark’s Vestas for the first time in commissioned giga-watt capacity in 2020. Much of that capacity is in China and Vestas and Siemens Gamesa continue to dominate in Europe and are lead players in other regions too. But the Chinese are playing catch up on the international scene.

In the coming decade, Chinese wind manufacturers may be propelled to international success from the support the Chinese government and Chinese policy banks, such as China Development Bank, a leading player in rolling out China’s Belt and Road Initiative. Subsidies, low-interest loans, and a host of other advantages provided to Chinese companies pose a considerable challenge to the European Union to ensure its companies stay at the forefront of this crucial green industry.

The article is also available in audio on China Stories 

Wind Wars is now available in Swedish on Kinamedia

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DIIS Eksperter

Luke Patey
Foreign policy and diplomacy
Senior Researcher
+45 9132 5479
Wind Wars
The Wire China, 2021