Experts warn of China's dominance in the wind technology sector

China is becoming increasingly dominant in the market for wind farms at sea or green hydrogen production. This could have consequences for Europe.

"The geopolitical consequences could be far-reaching and will directly affect the speed and costs of our energy transition," research institute TNO and The Hague Centre for Strategic Studies reported.

The two institutes conducted an analysis together that shows that China almost has a monopoly on the production of permanent magnets, which are an essential component of wind turbines. In recent years, the Asian country has also been rapidly developing the market for electrolysis to make green hydrogen.

"The question that arises is whether Europe chooses the cheaper Chinese electrolyzers or invests in its own more expensive alternatives for security in the long term," the institute's specialists said.

Dependence on Chinese products could be a risk, according to them, "as economic relations may suddenly deteriorate due to the situation in the world."