Blinken forgot to pack flag to attend the BYOF party
either that or all the China sanctions have resulted in dislocated supply chain links for flags, especially those made of Xinjiang cotton
my guess is that the Ukraine reconstruction shall require much from Xinjiang ala solar everything
I had always reckoned that China shall achieve 35-36% of global GDP by growing, but did not consider the possibility that the west would de-industrialize. In such event as now unfurled, China might overshoot to 50% of global GDP before settling at 45% steady-state.
Let's watch & brief
ft.com
RWE says US ban on imports from Xinjiang threatens solar ambitions
Germany’s biggest utility warns green energy projects are suffering delays but group supports the US legislation
RWE said the import of solar modules from Asia was now subject to ‘stringent checks’ after Washington enacted a ban on all imports from Xinjiang © Ina Fassbender/AFP/Getty Images
Germany’s biggest utility has warned that a US ban on imports from China’s Xinjiang region could “significantly hinder plans to build a green energy infrastructure”.
RWE said on Tuesday that the import of solar modules from Asia was now subject to “stringent checks” after Washington last year enacted a ban on all imports from the Chinese region where there have been allegations of human rights violations.
Germany’s largest power producer, which has expanded aggressively into renewable energy, including in the US, said it had suffered “considerable project delays” as a result of what it called the time-consuming reviews of solar module deliveries.
The company describes itself as the fourth-largest renewable energy player in the US and the second largest owner-operator of solar farms in the country.
“State-imposed restrictions on cross-border trade could also significantly hinder plans to build a green energy infrastructure,” the company said in its annual report. “We see an elevated risk of this being the case in the USA.”
It added: “If the USA continues to impede the procurement of solar panels, then it is possible that our photovoltaic expansion initiatives could fall behind schedule.”
At a press conference to announce RWE’s full-year results, chief executive Markus Krebber said that the company was not advocating that the US legislation, known as the Uyghur Forced Labor Prevention Act, be unwound.
Mark Noyes, head of RWE’s US-based clean energy division, added: “We certainly are supportive of the checks as the materials come through US customs. Those checks are critical to making sure what enters the US or any shore [is] manufactured and sourced from ethical positions.”
The solution, Krebber said, was to beef up solar supply chains in the US and Europe. “The right conclusion if we now need [significantly] more solar panels, turbines cables whatever — cannot be to water down the standards?.?.?.?We need now to ramp up the European supply chain as the US is ramping up their supply chain.”
In a subsequent statement to the Financial Times, the company said that, while it supported the US ban, it considered the procedure to certify that components do not originate from Xinjiang as “too lengthy” adding that it led to “risks of bottlenecks in the supply chain and resulting project delays”.
The north-western region of Xinjiang has been an important global hub for the production of goods from cotton to silica-based products that are used in solar panel modules.
Business lobby groups had warned that the Uyghur Forced Labor Prevention Act, signed into law by President Joe Biden in 2021, would pose a significant compliance challenge for western businesses operating in China because of the difficulties in conducting supply chain audits.
RWE’s remarks make it one of the only western companies to publicly voice concerns about the effects of legislation designed to pressure Beijing over Xinjiang. The UN has warned that crimes against humanity may be taking place against interned Muslim Uyghur and other minorities in the region. China denies the claims.
The delays suffered by RWE also underline the tension between the Biden administration’s ambitions to boost renewable energy production and its efforts to upbraid China. The EU also faces a similar dilemma.
In Germany, a new supply chain law came into force at the start of this year that requires companies with more than 3,000 workers to implement systems to check whether or not their suppliers are abusing human rights.
RWE’s intervention came as the company reported better than expected earnings before interest, taxes, depreciation and amortisation of €6.3bn for last year. The group pledged to raise its dividend in 2023 and scale up its investments in renewables.
Additional reporting by Andy Bounds in Brussels and Yuan Yang in London |
