Chinese wind turbine giants in pact to end 'vicious' price war and attacks on rivals
Brutal domestic price competition among Chinese players has been key driver for their push into international markets to boost profitability
China’s leading wind turbine makers have pledged to end a “vicious” domestic price war that has seen machines sold at below cost price, while also agreeing not to attack or spread lies about their peers.
The turbine makers signed the “self-discipline” pact today at the Beijing International Wind Energy Conference, according to Chinese media reports.
The twelve signatories include Goldwind, Envision, Mingyang, Windey, Sany, CRRC and Dongfang Electric.
Images published from the conference today show that the signatory OEMs have agreed not to sell products or provide services at below cost price without a justifiable reason.
They also agreed to not maliciously belittle or defame their rival turbine makers and their products; or to fabricate or disseminate false or misleading about them.
They will also resist entering unfair agreements that are impossible to fulfil or exceed their capabilities.
The companies have agreed to send one representative each to establish a 12-person committee to manage implementing the agreement. They will also set up a disciplinary supervision committee.
They will also decide on penalties for companies that compete with aggressively low prices, in accordance with the law.
White hot price competition in China has been a factor in pushing the country’s turbine makers to look to global markets, including Europe, for sales to ease pressures on profitability.
Europe’s wind sector has itself been up in arms about Chinese turbine makers selling machines at allegedly as little as half the price of those made on the continent.
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