Hungary Stands Alone as European Countries Unite to Defend Wind Industry against Chinese Competition

Published: December 20 2023

While most EU countries have joined forces to protect the European wind industry against Chinese competition, Hungary has chosen not to sign the joint declaration. This decision is seen as a reflection of Hungary's close economic ties with China.

Chinese manufacturers are becoming increasingly competitive in the global wind industry, posing a threat to European manufacturers. Although no Chinese wind turbines have been installed in Europe yet, many EU Member States are concerned about China potentially dominating the market in the future.

26 EU countries have signed a joint declaration aimed at safeguarding the European wind industry. The declaration focuses on ensuring a reliable pipeline for wind energy deployment and promoting the production of high-quality wind turbines that adhere to environmental, innovation, cybersecurity, and labor standards. National auction systems for wind power capacity will be revamped to support European bidders.

The wind industry has been lobbying for changes in the competitive bidding system, which currently favors developers that use cheaper Chinese turbines. The EU aims to implement new criteria that are objective, transparent, non-discriminatory, and non-price-based, in order to level the playing field for European bidders.

Hungary's refusal to sign the joint declaration is seen as a deliberate choice to maintain its strong economic ties with China. The Hungarian government has emphasized the importance of civilized cooperation with China and has actively sought Chinese investment in the country. This decision raises concerns within the European Commission regarding Hungary's relationship with China.

Through their joint declaration, EU countries are taking a united stand to protect the European wind industry against Chinese competition. While Hungary's decision not to sign the declaration reflects its close economic ties with China, it also raises questions about the country's commitment to supporting the European wind industry.

Why did Hungary refuse to sign the joint declaration to protect the European wind industry? Hungary refused to sign the declaration because of its close economic cooperation and relations with China. The Hungarian government, including Prime Minister Viktor Orbán and Foreign Minister Péter Szijjártó, has emphasized the importance of civilized cooperation with China instead of hostility.

What is the purpose of the joint declaration to protect the European wind industry? The purpose of the joint declaration is to protect the European wind industry from "unfair trading practices" by Chinese manufacturers. The fear is that China could dominate the global wind turbine market in the future, and the declaration aims to ensure a sufficient, robust, and predictable pipeline for the deployment of wind energy in European countries.

Which countries have signed the joint declaration to protect the wind industry? All EU countries except Hungary have signed the joint declaration to protect the European wind industry.

What are the challenges faced by the wind power sector in Europe? The wind power sector in Europe faces a set of challenges, which are mentioned in the charter of the joint declaration. These challenges include competition from Chinese manufacturers, the need for high environmental, innovation, cybersecurity, and labor standards in wind turbine production, and the need to change national auction systems for wind power capacity.

How will the EU change the national auction systems for wind power capacity? The EU aims to change the national auction systems for wind power capacity by adopting "well-designed, objective, transparent, non-discriminatory non-price pre-qualification or award criteria." This means that the criteria for awarding electricity supply contracts will not be solely based on the price of the electricity, but will also consider other factors that favor European bidders.

What is the concern of the European Commission regarding Chinese investment in Hungary? The European Commission is concerned about Chinese investment in Hungary, such as the battery factory in Debrecen. The Hungarian government's refusal to sign the joint declaration to protect the wind industry is seen as a clear refusal to loosen its relations with China, which is a matter of concern for the European Commission.

Have any Chinese wind turbines been installed in Europe yet? No, as of the time of the source article, no Chinese wind turbines have been installed in Europe. However, there are concerns that China could dominate the global wind turbine market in the future.

What is the ultimate goal of the joint declaration to protect the wind industry? The ultimate goal of the joint declaration is to promote the production of high-quality wind turbines with high environmental, innovation, cybersecurity, and labor standards. The declaration aims to ensure a favorable and competitive market for European wind turbine manufacturers in order to maintain the success of the wind power sector in Europe.