The claims about the Chinese having superior European ESG compliance and Cybersecurity are hard to believe, but could be that they just have the resources (and speed) to get their products to comply, while European competitors are too slow. But then again, could also be that it's just about the price tag in the end and they just want to hide this fact by stating other reasons
this post was submitted on 07 Jul 2024
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That’s a shame…
Clean energy, and its Hardware might also be cheaper. So where’s the problem?
There's a bunch:
- These things come with software (which is updateable) and remote maintenance options. Luxcara say they checked the IT security of the product they bought but the next buyers won't necessarily do the same.
- It contradicts the idea that renewables make us independent from autocracies.
- It contradicts the idea that renewables can ensure economic growth.
- It's embarrassing for Germany which used to be one of the leading builders of wind turbines but has lost a lot of market share in the past decade. Gamesa has massive technical issues, Vestas is investing in India, and now German wind parks built with Chinese turbines.
And in addition to that, let's not forget that the cheap price comes from a country with intransparent supply chains and from the use of forced labour.
The problem is the same with the solar industry that Germany once had (or any sort of domestic manufacturing, really). Without heavy subsidies they cannot compete with the cheap Chinese prices, making them non competitive on the market.
It's not just any products. China as a country is capable of making long-term bets on select industries: they select scientists, they build up regional supply chains, and importantly, they give subsidies, supposedly until Chinese companies have won the market but who knows. Their leadership was clever enough to make a couple of good bets on green tech. And that's what sets them apart any EU country right now.
Even with subsidies the West could not compete due to China's lower production cost from their cheap & forced labor forces or their lack of various regulations.