A recent Deutsche Welle article discussed concerns over Chinese companies’ involvement in sensitive infrastructure projects in Germany, particularly in the telecommunications and energy sectors. The article noted the difficulty Germans face in determining how much influence Beijing has over any given Chinese company, leading to apprehension around cooperation with such companies. The German government recently announced plans to phase out use of Huawei and ZTE components from the country’s core 5G network by 2026, citing national security concerns.
The Deutsche Welle article mentions the controversial plan by German investment company Luxcara to commission an offshore wind farm in Germany to be built by Chinese firm Ming Yang. The plan has sparked debate within Germany because energy supply is considered a sensitive sector. Wind power is becoming increasingly important in Germany’s energy mix, accounting for 38.5% of total electricity generation in the first quarter of 2024.
European suppliers cannot meet the current high demand for wind turbines, leading some German operators to consider Chinese partners. One of Luxcara’s reasons for choosing Ming Yang is the firm’s promised ability to provide high-powered turbines for the project by 2028.
The Deutsche Welle piece discusses concerns about data security as well as the competitive advantage that Chinese companies gain through government subsidies, noting that 99% of Chinese “new energy” companies received direct government subsidies in 2022.
Some argue that Chinese products are necessary for Germany’s green energy transition due to their affordability and availability, despite the associated risks.
Source: Deutsche Welle, July 30, 2024
https://p.dw.com/p/4ivFE