Review of China’s wind power firms internationalization: Status quo, determinants, prospects and policy implications

Abstract

In recent years, an increasing number of Chinese wind power firms have been going international in search of global market for development channels. By employing qualitative research and case study methods, this paper examines the export scale and markets of China’s wind turbines, the market entry modes and location choices of China’s outward foreign direct investment (FDI) in the wind power sector, identifies the determinants and prospects of Chinese wind firms’ internationalization, as well as provides policy implications. It is found that Chinese wind power firms has chosen to internationalize very differently from the Uppsala model in that the exports and FDI of Chinese wind power firms both took place around 2008, and the exports and FDI of Chinese wind power firms are closely linked. The determinants of Chinese wind firms’ internationalization are the competitive advantages of leading Chinese wind firms and the intensified domestic market competition, followed by Chinese government support for internationalization and the attractive overseas market. The prospects of Chinese wind firms’ internationalization are bright but challenging. Drawn on this analysis, conclusions and three policy implications are provided at the end of the paper. This paper contributes to the study of China’s wind power sector from a new perspective.