China Wind Power
U.S. Commerce Sec. Says China to Lift Local Mfg. Rule
United States Commerce Secretary Gary Locke said on Thursday that China is moving to allow more parts from foreign manufacturers to be included in the Middle Kingdom's domestic wind power projects.
As it stands, Beijing requires that 70% of the components in wind energy turbines erected around China be produced by factories within the country.
Locke couldn't say exactly when the rule would change, but after the 20th U.S.-China Joint Commission on Commerce and Trade, America's top industrial diplomat did indicate that a policy shift is on the way.
That will be a boon to American wind energy component producers like American Superconductor (NASDAQ:AMSC), whose stock rose by over 10% in the week from October 26, compared to a 3% decline for the S&P 500.
China's loosening of domestic manufacturing requirements for wind power is also part of a bi-national wind power exchange that involves companies of all sizes.
In Texas, a consortium just announced a $1.5 billion Sino-American joint venture between Shenyang Power Group, Cielo Wind Power, and the U.S. Renewable Energy Group, a private equity fund. That collaborative effort will bring turbines from China to the Lone Star State via Chinese turbine maker A-Power Energy (NASDAQ:APWR).
Look for more news soon on the growing exchange in U.S. and Chinese wind power infrastructure expansion and the wind power stocks that could profit.
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