A Chinese company that will provide key equipment for a new wind farm for NATO member countries has been found to have ties to the Chinese military, sparking controversies in terms of security and competition.
According to a report by “Newsweek” on Monday, despite warnings issued by government defense think tanks, Germany, as a NATO member, has decided to designate the Chinese company “Ming Yang Smart Energy Group” as the supplier of equipment for its North Sea Waterkant wind farm project.
The North Sea Waterkant wind farm project in Germany is scheduled to start operating in 2028, with a generating capacity of nearly 300 megawatts, capable of providing electricity to around 400,000 households. The project is led by the German asset management company Luxcara.
The “Ming Yang Group” was founded by retired soldier Zhang Chuanwei. He has close ties to the Chinese Communist Party and the People’s Liberation Army. The company’s extensive employment of retired soldiers came under scrutiny, raising security risks for NATO allies.
According to the introduction and interviews with Zhang Chuanwei on the Guangdong Provincial Department of Veterans Affairs website, he joined the People’s Liberation Army at the age of 16 in 1978 and applied to join the Communist Party at the age of 18.
The introduction released on the website in 2023 stated: “Since joining the Communist Party, Zhang Chuanwei has always been loyal to the party, adhering to his beliefs, and staying true to himself, fulfilling his original intentions and vows when joining the party.” “He considers it his mission to revitalize the country’s industries and serve the nation through industry.”
The introduction also mentioned that the group employed over 300 retired soldiers. In 2022, “over 50% of the team had contributions from retired soldiers, either as leaders of the ‘assault teams’ or core members of critical missions.” However, the meaning or location of the “assault teams” was not clearly defined in the text.
In January 2024, the German Institute for Defense and Strategic Studies (GIDS) warned that the Chinese Communist Party is trying to use private enterprises like “Ming Yang Group” to gain leverage that can affect global order. Previously, Zhang Chuanwei, as a national People’s Congress representative, advocated for the construction of wind farms in disputed areas in the South China Sea, which exceed China’s exclusive economic zone.
The GIDS pointed out that in the event of a crisis, critical infrastructure provided by China could be manipulated and rendered ineffective.
A confidential report seen by “Newsweek” stated that the think tank believes allowing a Chinese company to supply wind power equipment would introduce technology, political, and supply chain risks, strongly advising the German government against doing so.
Arnold C. Dupuy, chairman of the NATO Science and Technology Organization’s energy security program, also expressed concerns about continuing to involve Chinese companies in the project, citing reasons related to security, supply chain, and protecting domestic enterprises.
He also mentioned that the United States had previously accused China of infiltrating its infrastructure through cyber hacking activities like the “Volt Typhoon.” German energy projects could also become avenues for Chinese cyberattacks.
Furthermore, some critics expressed worries about the wind farm project being near German military live-fire exercise areas, fearing it could open the door for China to dump wind energy equipment in Europe using state subsidies, potentially harming European suppliers and leading to the decline of once-thriving industries like the European solar panel sector.
Lisa Zillessen, a spokesperson for Luxcara, told “Newsweek” that the wind farm project is technically secure. The company is “fully aware” of the political influence associated with awarding the turbine contract to the “Ming Yang Group,” but renewable energy goals and energy security projects “cannot be achieved without equipment components from Chinese companies.”
Zillessen did not address the questions regarding the background of the “Ming Yang Group” being questioned as having ties to the Chinese Communist Party and the military.
In July 2024, after a Chinese wind turbine manufacturer received its first order in Germany, the European Commission, the executive branch of the European Union, began investigating whether Chinese companies were benefiting from unfair subsidies. The EU recalls how over a decade ago, the European solar industry suffered significant losses due to policymakers failing to effectively curb Chinese imports, leading to the closure of many European manufacturers.
In recent years, wind turbines manufactured in China have been rapidly increasing orders in Europe. European industry officials warn that Chinese companies may establish a long-term presence in the European market.
Wolfram Axthelm, managing director of the German Wind Energy Association (BWE), remarked to the media in 2024: “Once you open the door, you can’t close it again.” China’s excess wind turbine production capacity means Chinese competitors are trying to flood the European market.
Representatives of the European industry claim that Chinese manufacturers offer incentives like deferred payments and sell products at prices up to 50% lower than their European competitors, making it challenging for them to compete effectively.