How American media comment on China's wind power i

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Sour grape effect? See how the American media comment on China's wind power industry policy guide: facing China's growing new energy industry, the United States and other western developed countries, while feeling the competitive pressure in terms of capital investment and technical indicators, have not forgotten to pick a bone in the egg and comment on China's policy of independently developing emerging industries. This report in the New York Times is an example that deserves our attention

1 gomeisa's changes

like other foreign companies, gomeisa of Spain learned through hardships that entering China's lucrative market means abiding by strict rules, which China has set according to its own interests

as an old European machinery company, COMESA entered the turbine industry as early as 1994, and its wind turbines are installed all over the world. In 2010, COMESA became the third largest turbine manufacturer in the world with sales of US $4.4 billion, second only to Vestas in Denmark and General Electric in the United States

10 years ago, when China began to buy a large number of imported wind turbines for the use of clean energy, COMESA became an early lucky man in this market because of the relatively low labor force in Spain. COMESA took action earlier and expanded its sales with ambition. It set up an organization in China. By 2005, its market share had reached 35%. However, the Chinese government has begun to allocate funds for the purchase of equipment for state-owned wind farms. At the same time, the requirements for the localization of turbines are becoming higher and higher. Those sporadic demands become overwhelming in an instant. In April, 2005, China's national development and Reform Commission stipulated that at least 70% of the equipment purchased by wind power generation sites should be domestic equipment according to the price. Its No. 1204 document directive stipulates that the localization rate of wind power equipment should reach more than 70%, and wind farms that do not meet the requirements of equipment localization rate are not allowed to be constructed

according to WTO regulations, any act of setting the proportion of local equipment is a violation of WTO rules, not to mention such a high localization rate of equipment. But the Chinese government seems to believe that multinationals dare not risk losing China's booming wind power market

sure enough, COMESA and other major multinational wind turbine manufacturers finally chose not to fight, but to open factories in China to help train local workers to meet the 70% threshold. George caffert, chairman and CEO of COMESA, said that COMESA will open factories in China at some stage, whether there is a localization rate policy or not. George caffert said: if we don't do this, naturally someone else will do it. If you want to enter a country, you must take responsibility for it

but now, local manufacturers who became rich overnight have seized 85% of the wind turbine market, enjoying low interest loans and cheap land from the government, and enjoying preferential contract terms for state-owned power generation enterprises who want to buy equipment. COMESA's market share is currently only 3%. With the care of the government, Chinese enterprises have flourished and now control nearly half of the global $45billion market share. The largest ones are targeting overseas markets, especially the United States, where there are long-term leaders such as general electric

2 difference of local manufacturing

there is a difference between setting up an assembly line in a local company and putting important parts into production in that country, and the former is the practice of COMESA and other European wind turbine companies in the United States

there is no regulation on localization rate in the United States, and the average proportion of American parts used in the wind turbine industry is 50%. In terms of U.S. business operations, COMESA is less dependent on U.S. suppliers, but it still imports some accessories from Spain, including key gearbox

within a few weeks after the release of No. 1204 document in China, COMESA sent dozens of Spanish engineers to Tianjin. These engineers not only supervise the construction of assembly plants, but also spread among local Chinese companies to teach them how to forge silicon carbide semiconductor industry and optoelectronic industry cluster in batches of steel, and how to manufacture a series of complex electronic control mechanisms

one of the Chinese suppliers specializes in manufacturing 10 ton steel frames for wind turbine gearboxes and generators. Its equipment can even be used under strong wind conditions, and the cost is so low that even the Spanish company transported it from China across half the world to gomeisa's assembly plant in fairless hills, Pennsylvania, for wind turbine assembly. Mr. caffert said that the manufacturing industry in the United States has been greatly weakened in recent decades, and some parts are difficult to find in American machinery companies

it was not until the summer of 2009 that senior officials of the Obama administration began to examine the obstacles to us clean energy exports, and the US government put pressure on China on document 1204. The Chinese government cancelled the regulation two months later. But at that time, Chinese enterprises no longer needed policy protection. The localization rate of some accessories used by COMESA fans has exceeded 95%

Steve Sawyer, Secretary General of the Global Wind Energy Council, said that the goal of China's localization rate requirements has been achieved, or even exceeded expectations

3 covet the overseas market

China agreed to abide by its trade rules when it joined the WTO in 2001, which is also an indispensable testing instrument for scientific research institutions to conduct new material research. But for its own wind power industry policy, it argues that its behavior is within the scope of fair competition. Lijunfeng, deputy director of the Energy Research Institute of the national development and Reform Commission, defended the localization rate policy. He said: it is more reliable. This is localization support. China is a developing country. Developing countries need to do their best to promote industrialization

The Obama administration holds a different view. Its investigation on whether China's new energy policy violates WTO rules includes the localization rate. The survey was sponsored by the United Steelworkers' Union of America. However, zhangguobao, former director of China's national energy administration, countered that it was wrong for the United States to quote the localization rate rule in its investigation because China had already abolished this rule

in fact, as state-owned wind farms are the main buyers of wind energy equipment, China has many policies to protect their dominant position and limit the market opportunities of foreign enterprises who want to develop wind farms. Among many international turbine manufacturers, it is increasingly difficult to share a small piece of China's development cake

the Chinese government is now slowing down the approval of domestic wind farms in order to give the domestic power system time to digest the thousands of Taixin wind turbines. Although they have been built, they have not been connected to the national power. This policy also means that after being supported by companies such as COMESA, Chinese turbine manufacturers must look beyond the domestic market restricted by the government to obtain more long-term development. The Chinese government is trying to build its wind energy industry into a global industry leader, help manufacturers coordinate their export strategies and provide various technical support

Sinovel wind power, the largest wind turbine manufacturer in China, said that they hope to become the world's No. 1 in 2015. Hanjunliang, chairman and President of the company, said frankly that his goal is to make the sales of turbines at home and abroad account for half respectively. Sinovel wind power is currently establishing sales offices across the United States and is preparing to increase its export offensive next year. This summer, they received huge financial support from more than 13billion US dollars of low interest loans from China's state-owned banks. In addition, tens of billions of dollars are being raised through IPOs in New York and Hong Kong represented by Morgan Stanley this fall

the alarm bell of multinational corporations has been sounded. Vestas, for example, is closing four factories in Denmark and one factory in Sweden. It laid off one eighth of its 24000 workers this fall in an effort to bring its costs close to Asian levels

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