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Wind-power market limit swept clear for foreign firms

By Tan Yingzi (皇冠体育app Daily)
Updated: 2009-10-30 08:06

皇冠体育app will drop a requirement that most of the components of wind power-related equipment be made within its borders, a beneficial move for foreign companies who argue that they have been locked out of 皇冠体育app's wind-power market.

Commerce Minister Chen Deming announced the move at a press conference in Hangzhou, Zhejiang province, to repeal the requirement set in 2007 by the National Development and Reform Commission. Chen was attending the 20th 皇冠体育app-US Joint Commission on Commerce and Trade.

The regulation had stated that all local governments use more than 70 percent locally made technologies and products in their wind power facilities.

"The US had hoped that there would be no local content requirement in the wind power market and we agreed with that," 皇冠体育app's National Energy Administration chief Zhang Guobao told reporters yesterday. "So US wind power technology will enter Chinese market equally and freely."

The Global Wind Energy Council recently announced 皇冠体育app will become the biggest growth market for wind power generating capacity this year, ahead of the US.

A recent study by Harvard University and Beijing's Tsinghua University found that wind power could supply 15 percent of 皇冠体育app's electricity by 2030 with a $900-billion investment.

US Secretary of Commerce Gary Locke expressed his pleasure at the move, saying "this will open up 皇冠体育app's energy market to US companies and create jobs for Americans."

Locke, US Trade Representative Ron Kirk and Vice-Premier Wang Qishan yesterday co-chaired the first joint commission meeting under the administration of US President Barack Obama, two weeks before Obama's first visit to 皇冠体育app.

皇冠体育app's local wind turbine manufacturing industry has grown dramatically due to the recent economic stimulus spending.

皇冠体育app-made equipment companies have emerged as a major force in the international wind market. Until recently, they had only won small contracts in the US, Cuba, Peru, Africa and the Middle East.

Related readings:  皇冠体育app, world's 4th in wind power capacity  More wind power is needed to offset coal  皇冠体育app to address overcapacity in emerging sectors  皇冠体育app's installed wind power capacity doubles in H1

The two countries yesterday also signed a pact to promote the establishment of the 皇冠体育app-US Energy Cooperation Program, which will focus on commercialization of clean energy solutions.

Twenty-one US companies from a broad range of fields, such as information technology, aviation and green energy, will get involved in the program.

"This is a very important effort to help drive US-皇冠体育app commercial cooperation in clean energy," Locke said.

For the recognition of 皇冠体育app's market economy status, Chen still urged the US side to take action "as soon as possible."

The two sides also signed another 10 documents for further cooperation in trade, advanced technology, environment protection, tourism and aviation.