EU Wants China to Expand Foreign Role in Energy Projects

By PATRICIA JIAYI HO
BEIJING -- European Union Trade Commissioner Catherine Ashton said on Wednesday that she hopes China will make it easier for foreign companies to participate in public procurements for renewable energy projects, such as wind and solar-panel farms.
"Trade in environmental products and services is one important area where the EU and China can achieve concrete results," Ms. Ashton said in a speech to students at a Beijing university. "The EU is committed to freeing up trade in this sector, which is the fastest way to diffuse clean technologies, especially in developing countries."
Foreign companies have said they are unfairly excluded from clean-energy projects in China. Wind-power developers, for example, are required to make 70% of their parts in China. Even foreign companies that meet that threshold rarely win bids for wind-power projects.
A position paper by the European Union Chamber of Commerce in China last week said China fails to treat local and foreign companies equally in the public-procurement process. Conditions for European companies operating in China have become increasingly challenging, the report said. It called for an end to both restrictions on foreign investment and government intervention in industry.
Ms. Ashton also urged China to be more selective when backing industries through massive bank lending.
"Where lending is focused on sectors that suffer from overcapacity, concerns about unfair trade may arise," she said. "Overcapacity becomes an issue of international concern because the output that cannot be absorbed domestically in China will seek outlets on global export markets."
Write to Patricia Jiayi Ho at patricia.ho@dowjones.com