Christian Bruch, CEO of Siemens Energy, underscored the pressing issue of Europe's heavy reliance on China within the energy sector. Bruch's remarks come amidst escalating global trade tensions and a surge in scrutiny over Chinese practices affecting European players.
Bruch emphasized the indispensability of Chinese supplies in the European energy transition, stating, “Trying to build a wind turbine without any Chinese supply will be close to impossible. Energy transition without China doesn't work.” The manufacturing of wind turbines crucially hinges on materials sourced from China, particularly rare earths and permanent magnets, presenting limited alternatives for the sector.
While acknowledging the necessity of Chinese involvement, Bruch stressed the need for fair competition and uniform standards, urging the EU to ensure Chinese wind turbine manufacturers adhere to the same regulations as their European counterparts. He advocated for a balanced approach, rejecting full-scale protectionism while advocating for clear rules on financing and guarantees.
Siemens Energy's recent restructuring efforts reflect the challenges posed by Chinese competitors. Bruch disclosed that Siemens Gamesa, the company's wind unit, will strategically withdraw from markets where it faces intense competition from Chinese players. He underscored the importance of achieving double-digit profit margins within the next 4-5 years to sustain the onshore wind division's viability.
The CEO's stance highlights a broader dilemma facing European companies, as they navigate the complexities of dependency on Chinese supplies amidst geopolitical tensions and trade uncertainties.
