Chinese investment in the EU renewable energy sector: motives, synergies and policy implications

This paper addresses three questions: How have trade and investment in wind and solar sectors evolved between the EU and China in recent years? Is there a link between rising trade conflicts and trade and investment trends? And what wider motivations and synergies can be identified in Chinese investments in the RE sector? To address these questions we analyse trade and investment data, as well as qualitative data, including information from media and company reports. Large increases in trade and investment were followed by rapid falls since 2012-13. Trade tensions have not led to increases in investment, rather the inverse. We find that Chinese investment in these two sectors is very concentrated in Germany. The key motivation is market seeking, although R+D is also important, especially for wind. Most investments are greenfield, a preference that has persisted over time. Our qualitative analysis of some key acquisitions indicates that technology integration and the consolidation of capacities across the supply chain were key motivations in most of the cases studied. We conclude with some policy orientations.