CHINESES TARIFF AND TAX POLICY DRIVE GROWTH OF THEIR WIND INDUSTRY
A May 29, 2008 on-line article by ClimateChangeCorp.com surveys supply chain shortages around the globe as the wind turbine market continues to heat up. Aside from noting how the US “dithering” on establishing a predictable tax-policy (Congress’ failing so far to renew the Production Tax Credit, which expires at the end of 2008) to support the growth of the wind industry in the US, the article notes how China is actively growing this new, advanced manufacturing sector.
“Massive demand” in China for turbines is predicted to tighten global turbine supplies, but the Chinese are encouraging domestic investment and sourcing through a variety of tools that are apparently too good or too odious for US policy makers. These include increasing tariffs on turbines imported into the Chinese market this May 2008, while slashing import taxes on components.
The former will slow the importing of turbines, and the latter will encourage the development of a domestic turbine assembly industry. In addition, the Chinese require 70% domestic content in their installed turbines.
See this link for the original article:
http://www.climatechangecorp.com/content.asp?contentid=5344
-John Colm
