China's Impact on the Global Wind Power Industry

Journal of Current Chinese Affairs, Vol. 42, No. 1, 2013, p. 37-69

Posted: 1 Apr 2012 Last revised: 24 Mar 2015

See all articles by Rasmus Lema

Rasmus Lema

Aalborg University - Department of Business and Management; University of Johannesburg - College of Business and Economics

Axel Berger

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Hubert Schmitz

University of Sussex - Institute of Development Studies

Date Written: 2013

Abstract

China’s economic rise has transformed the global economy in a number of manufacturing industries. This paper investigates whether China’s transformative influence extends to the new green economy. Drawing on the debate about how China is driving major economic changes in the world – the ‘Asian drivers’ debate – it identifies five corridors of influence and investigates their relevance for the wind energy industries. Starting with the demand side, it suggests that the size and rapid growth of the Chinese market have a major influence on competitive parameters in the global wind power industry. While Western firms have found ways of participating in the growth of the Chinese market, the government's procurement regimes benefit Chinese firms. The latter have made big investments and learned fast, accumulating production capabilities that have led to changes in the global pecking order of lead firms. While the combined impact of Chinese market and production power is already visible, other influences are beginning to be felt – arising from China’s coordination, innovation and financing power.

Keywords: wind power, global value chain, competition, cooperation, China, Asian Drivers

Suggested Citation

Lema, Rasmus and Berger, Axel and Schmitz, Hubert, China's Impact on the Global Wind Power Industry (2013). Journal of Current Chinese Affairs, Vol. 42, No. 1, 2013, p. 37-69, Available at SSRN: https://ssrn.com/abstract=2032533

Rasmus Lema (Contact Author)

Aalborg University - Department of Business and Management ( email )

Copenhagen, DK-2450
Denmark
45 9940 2708 (Phone)

University of Johannesburg - College of Business and Economics ( email )

South Africa

Axel Berger

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany

HOME PAGE: http://www.die-gdi.de

Hubert Schmitz

University of Sussex - Institute of Development Studies ( email )

Brighton
Falmer, Brighton, East Sussex BN1 9RE
United Kingdom

HOME PAGE: http://www.ids.ac.uk

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