German wind power industry warns EU must not let China take control of key future industry

The wind power industry in Germany must not repeat the same mistakes as the country’s solar power industry and cede significant market shares to cheaper Chinese competitors, labour union IG Metall has warned. China is using “unfair” industry subsidies to promote its own wind turbine manufacturers that prompt operators in Europe to make shortsighted decisions based on low prices, said the union together with worker representatives of manufacturer Siemens Energy. They add that these decisions have  long-term negative consequences regarding industrial prowess, economic stability, and energy security.

“After the solar power industry, another future technology is at risk of falling prey to unfair competition,” said Jürgen Kerner, deputy head of IG Metall. “This must not be allowed to happen.” If Germany aspires to be a leading green technology provider, the country must demonstrate the political will to make it happen, Kerner argued. The union therefore called for the swift implementation of the EU’s Net Zero Industry Act to protect jobs and supply chains in Europe. Moreover, the region’s wind farm operators ought to rethink their own acquisition policies to arrive at “responsible corporate strategies.”

The warnings from wind industry representatives were prompted by news about the purchase of 16 Chinese-made offshore wind power turbines for a project in Germany. “This is problematic because the Chinese state is massively supporting its domestic producers and thus distorts competition,” the union argued. Kerner added that this would create severe challenges for a key industry of the future in the delicate area of energy supply. The energy crisis in the wake of the Russian invasion of Ukraine has shown the consequences of having the region’s energy supply dependent on other geopolitical actors. “We must not lose control over our critical infrastructure,” said Kerner. “As IG Metall, we expect that system security is valued over purchasing cheap components.”

According to Siemens Energy, around 300,000 jobs in Europe are directly or indirectly linked to the wind power industry; the company’s turbine branch, Siemens Gamesa, employs around 27,000 people. The government in Beijing has been accused of using subsidies not in line with WTO rules and is said to purposefully produce excess quantities of several industrial products, including solar power modules and electric vehicles, to flood markets elsewhere and undercut producers in other countries.