Concerns have been raised by Member of Parliament (MP), Stewart McDonald, regarding the proposed Chinese wind turbine factory in Scotland. McDonald questions why the project has been allowed to proceed while the European Union (EU) is investigating Chinese wind turbine makers. The factory, proposed by Mingyang Smart Energy Group Ltd, is one of seven projects on Offshore Wind Scotland’s priority list. However, McDonald argues that handing over such a significant capability to a company from an authoritarian and hostile state raises security concerns. He also highlights the EU’s recent anti-trust investigation into Chinese turbine manufacturers and Norway’s rejection of a similar project by Mingyang. McDonald criticizes the lack of a cohesive strategy from both Whitehall and the Scottish Government in approaching the China challenge.
Western countries have become increasingly wary of Chinese products that can hold data due to the Chinese regime’s National Intelligence Law. The law requires all organizations and citizens to cooperate with national intelligence efforts, raising concerns about data privacy and security. Giles Dickson, CEO of WindEurope, has called for non-European wind turbine data to be stored and analyzed exclusively in Europe to mitigate these concerns. Additionally, Chinese wind turbine manufacturers have been accused of offering lower prices and deferred payment terms that European companies are not allowed to offer.
Karsten Merker, co-general manager for Mingyang Europe, denies that the company receives unfair subsidies from the Chinese state. He states that Mingyang is listed on the Shanghai stock exchange and complies with accounting rules and transparency requirements. Merker also claims that the company is willing to have its data vetted by wind farm operators in Europe before being sent to their manufacturing facility in China for maintenance.
On Tuesday, the EU competition chief announced an inquiry into Chinese wind turbine suppliers and conditions for wind park development in several European countries. This comes as the EU has initiated multiple investigations using foreign subsidies legislation against Chinese companies. The Chinese commerce ministry has criticized the EU’s actions, calling them protectionist and harmful to fair competition.
The Scottish Government has stated that the decision to prioritize projects for investment is made by the offshore wind industry. They welcome international companies’ involvement in the offshore wind sector and emphasize the need for appropriate due diligence. The UK government is responsible for national security and energy-related critical national infrastructure.
In conclusion, concerns have been raised regarding the proposed Chinese wind turbine factory in Scotland. Questions surrounding security, competition, and China’s global impact have been brought forward by MP Stewart McDonald. The EU’s investigation into Chinese wind turbine makers and the rejection of a similar project in Norway further contribute to these concerns. The Scottish Government emphasizes the importance of maintaining pragmatic economic relationships while ensuring appropriate due diligence. The situation highlights the complex challenges of balancing economic opportunities with national security considerations in an increasingly interconnected global market.
