German Firms Seek Collaboration with Chinese Companies in Key Sectors

31 Jul, 2024

German Firms Seek Collaboration with Chinese Companies in Key Sectors

Despite the German government's move to ban Huawei and ZTE components from core 5G network parts by 2026, some German companies seek collaboration with Chinese firms in other areas. The ban reflects concerns over Chinese tech companies' ties to Beijing and their influence on critical infrastructures like energy, transportation, and healthcare. However, Luxcara, an independent asset manager, has contracted Chinese firm Ming Yang to build turbines for a German wind project. This decision was based on extensive due diligence covering supply chain and cybersecurity.

Energy supply, considered critical infrastructure in Germany, aims to generate 80% of electricity from renewables by 2035, with wind power playing a significant role. Luxcara chose Ming Yang for their Waterkant wind park project due to the company's ability to meet delivery timelines with powerful turbines. Traditionally, Danish and German-Spanish manufacturers have dominated Europe's offshore wind power, but German operators are now considering Chinese suppliers.

Limited European turbine supply and high demand prompt this shift. Asian companies often lead in new technologies due to faster equipment availability and economic advantages, including state subsidies. Data security remains a concern, but Luxcara ensures no direct data link between the wind park and the Chinese manufacturer, with operations managed entirely in Germany.