China has emerged as the global leader in wind energy, driven by soaring domestic demand and government-backed environmental initiatives. At the forefront of this growth is Goldwind, China’s top wind power company, which is set to release its annual financial results today. These results will offer insights into both its domestic dominance and its expanding global presence.
China’s Wind Power Surge
While China has been a significant player in global wind energy since the late 2000s, it has only recently risen to the top. In 2024, six of the world’s seven largest wind turbine manufacturers were Chinese, according to BloombergNEF. Goldwind led the industry, surpassing European and U.S. competitors for the first time.
Despite this dominance, Chinese firms primarily serve domestic demand, making the global wind market relatively diverse. “The market for wind turbines outside of China remains varied,” said Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air (CREA). He noted that non-Chinese manufacturers could maintain their foothold if governments encourage domestic production to counter reliance on China.
Overcapacity and Trade Tensions
China’s rapid wind energy expansion has sparked concerns in Western markets about potential market distortions. Critics argue that Beijing’s subsidies have given Chinese firms an unfair advantage over competitors such as Denmark’s Vestas and the U.S.-based GE Vernova.
A January report from the Organisation for Economic Cooperation and Development (OECD) revealed that Chinese wind turbine manufacturers have historically received higher state subsidies than firms in OECD member countries. In response, the European Union launched an investigation in April 2024 into state-backed support for Chinese turbine exports.
Phil Cole, Director of Industrial Affairs at WindEurope, a Brussels-based industry group, emphasized the risks of Chinese overcapacity: “We cannot allow China’s market conditions to undermine Europe’s established wind energy sector. Losing European manufacturing would jeopardize both energy security and national security.”
The Rise of Goldwind
Goldwind’s origins trace back to the 1980s, when Xinjiang Wind Energy built its first turbine farm in western China. Wu Gang, an engineer-turned-entrepreneur, later transformed the company into a pioneering force in China’s wind industry, officially founding Goldwind in 1998.
British engineer Andrew Garrad, co-founder of engineering consultancy Garrad Hassan, recalls early dealings with Goldwind. “At the time, the West viewed China as a developing nation in need of assistance,” he said. “Few recognized its potential as an industrial powerhouse.”
Garrad reminisced about Wu visiting his Bristol office in the early 1990s to negotiate a software deal worth £10,000. “Wu had little money then and stayed in a youth hostel, sharing a room with five others,” Garrad recalled. Goldwind, however, soon struck gold, evolving into a global leader in wind turbine technology and installed capacity.
Expanding Beyond China
As China’s wind market matures and government subsidies wane, Goldwind has intensified its focus on international markets. In 2023, the company officially removed “Xinjiang” from its name, signaling a strategic shift toward a more global brand identity. The move was also widely interpreted as an effort to distance itself from the controversial region, where Beijing has faced allegations of human rights violations.
China’s wind power firms have made inroads in emerging and developing markets, particularly those linked to Beijing’s Belt and Road Initiative. “Chinese manufacturers gained traction after Western firms struggled with supply chain disruptions and rising costs caused by Covid-19 and Russia’s invasion of Ukraine,” said Myllyvirta.
Endri Lico, an analyst at energy consultancy Wood Mackenzie, noted that Chinese companies benefit from scale and control over raw materials. “China’s strength lies in its vast production capacity and dominance over key supply chains,” he said. However, Western markets remain resilient due to entrenched local suppliers and government policies favoring domestic production.
As Goldwind looks to solidify its global footprint, its ability to navigate geopolitical challenges and trade barriers will determine its long-term success beyond China’s borders.
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