Report Warns of China's Dominance in Green Tech Supply Chains
A new audit highlights concerns over forced labor, security risks, and dependence on Chinese manufacturing for renewable energy goals.
Britain's pursuit of Net Zero targets is creating a significant reliance on Chinese technology, including solar panels and wind turbines, according to a new report. The audit by the Inter-Parliamentary Alliance on China (IPAC) found substantial evidence of state-sponsored forced labor within the electric vehicle and renewable energy supply chains, alongside security risks posed by software vulnerabilities in the equipment.
The report states that climate targets, as currently set, cannot be met without cooperation with China, leading to a medium-term dependence on supply chains that may be tainted by forced labor and unfair trade practices. China holds a near monopoly on polysilicon, the essential material for solar panels, and manufactures three-fifths of all wind turbine blades. Furthermore, it controls the market for rare earth minerals crucial to green technologies.
This dominance allows Chinese manufacturers to significantly undercut competitors, with their wind turbines reportedly up to 40 percent cheaper than European counterparts. The report also points to risks to UK energy security stemming from unpatched software flaws in the technology. A disruption in the Chinese magnet supply chain, for instance, could halt offshore wind development within months.
Concerns about national security and labor practices have led to recent actions. Last year, the UK government blocked a plan by Chinese company Ming Yang to establish a large wind turbine manufacturing plant in Scotland on national security grounds. Additionally, under pressure from lawmakers, ministers agreed to add a requirement to legislation ensuring that GB Energy would not use solar panels linked to slave labor.
IPAC chairman Sir Iain Duncan Smith emphasized the need to assess China's role, stating, "We need to understand whether we see China as a threat or not. If we see China as a threat, it means we have to approach what we buy or arrange from China on a basis that either we can control that threat or we do not do it."