(Bloomberg) — Germany is taking steps to protect its domestic and broader European wind industry as fears grow of being squeezed out by Chinese competition.
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The Ministry of Economic Affairs has drawn up an action plan to ensure a level playing field in the sector, improve cybersecurity and reduce dependence on crucial components. The announcement came after policymakers met representatives of European wind turbine manufacturers and emphasized the need to scrutinize Chinese manufacturers involved in European projects in particular.
“We have a strong wind industry in Germany and Europe,” said Economy Minister Robert Habeck. “We must continue to improve the framework conditions so that this industry remains competitive and the conditions for future value creation in Germany and Europe are in place.”
Earlier this year, a German offshore wind developer chose a Chinese manufacturer to supply turbines needed for a project in the North Sea, prompting scrutiny from the German government and opposition from industry representatives in the European Union.
The region has already seen its solar industry damaged by competition from cheap Chinese panels, and has become more sensitive to the influence of third countries on sectors considered strategic after Russia’s war against Ukraine cut gas flows to the continent contained.
The Economy Ministry said it will provide large amounts of guarantees to wind turbine manufacturers through its state-owned bank KfW. It also urged KfW, the European Bank for Reconstruction and Development and the European Investment Bank to review financing of Chinese companies that are “contrary to national or European industrial policy interests” and “fundamentally suspected of become disruptive to competition.”
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