[Text/Observer Network Qi Qian] For the leading position of China in the green energy field, US media have been uneasy. After noticing that Chinese enterprises have successively won bids for wind power projects in the Philippines, they became even more anxious.
On May 5, The Washington Post published an article describing the Philippines as "the Southeast Asian country with the most tense relations with China," and reported that despite the so-called "tensions" and "national security" issues, the Philippines turned to China to seek renewable energy infrastructure needed for its development, given that China-made clean technology is far more competitive than products from the US and Europe.
According to China Wind Power Network news, in February last year, a Chinese enterprise signed wind turbine procurement agreements for two wind power projects with Alternergy, a renewable energy company headquartered in Manila, with a total scale of 162 MW. The procurement agreement includes the design, engineering, manufacturing, and delivery of wind turbines, with a combination of models rated at 6.5 MW and 8 MW, and also includes a 10-year service and maintenance agreement.
In talking about the two wind power projects, Gerry P. Magbanua, president of Alternergy Renewable Energy Company, frankly admitted: "China's offer is much lower than that of European peers, which has made a significant impact on us."
The report points out that in recent years, China has firmly held the dominant position in the renewable energy sector. Since President Trump took office this January, he decided to significantly cut subsidies aimed at promoting the transition to renewable energy, while threatening tariffs on Southeast Asia. This has undoubtedly brought a favorable boost to China's influence in Southeast Asia, whether in the clean technology field or in geopolitics.
"China doesn't need to take any action to win," said Samantha Kast, policy analysis director of AidData, a research institute at the College of William & Mary. "Unfortunately, it is the US itself that keeps reinforcing the doubt that 'the US is no longer a reliable economic and security partner'."
In April, wind turbine components produced by a Chinese enterprise arrived at the Alabat Island port in Quezon Province, Philippines. Website of Philippine Alternergy Company.
The Washington Post mentioned that in recent years, China has taken the global lead in clean technology manufacturing: it produces and uses solar panels, wind turbines, and electric vehicles more than the total of all other countries in the world, and at a lower production cost. Nikkei Asia previously pointed out that China occupies 90% of the market share in key links of the solar supply chain, such as polysilicon and solar cells.
The report mentioned that China has established its global reputation in the clean technology sector, cooperating with the Global South, including Southeast Asia, to achieve "green development." The report stated that if developing countries want to develop their economies without exacerbating climate change, they need a large amount of renewable energy, and China is rapidly becoming their first choice.
By contrast, as a climate change skeptic, after taking office, Trump drastically cut subsidies aimed at promoting the transition to renewable energy, supported traditional energy industries, and terminated the work of USAID in promoting renewable energy in developing countries.
At the same time, the Trump administration imposed heavy taxes on Southeast Asian countries. On April 21, it decided to impose high tariffs on solar manufacturers in Malaysia, Cambodia, Thailand, and Vietnam. Among them, Vietnam was 395.5%, Thailand was 375.2%, and Malaysia was 34.4%. Due to "refusal to cooperate in the investigation," solar products from Cambodia will face a tariff of 3521%.
A former senior official of USAID said: "If the US is no longer an option, then the countries in the region have no choice but to strengthen interdependence and integration with China." The report mentioned that previously, USAID had been working to gain support from international institutions and other developed countries to make China not the only provider of renewable energy in the Global South.
This former official believed that the US stopping development assistance for clean technology means that China has no competitors in this field.
Floating solar panels at a Thai hydropower station. Visual China.
The Washington Post said that the change in US policies has put the Marcos government, which relied on US "backing" to keep "stirring trouble," in a difficult situation. The Philippines has a long coastline and often suffers from tropical typhoons, floods, and landslides, facing the risk of intensified extreme weather. To ensure energy security, the Marcos government attempted to increase the share of renewable energy from the current 22% to 35% by 2035.
It is worth noting that the Marcos government had previously hyped up so-called "national security" issues to review Chinese investments, causing some infrastructure agreements signed between China and the Philippines during former President Duterte's tenure to stall.
Meanwhile, before Trump took office, Philippine politicians always counted on the US and its allies to compete with China in the clean technology field.
For example, in 2021, USAID launched an energy security plan in the Philippines aimed at attracting $750 million in private sector investment. US officials also cooperated with the Philippine government on policy and planning issues, including helping plan "competitive renewable energy zones" to determine the placement of wind farms, solar panels, and transmission lines.
Jennifer Shuh-Pei, executive director of the Asia Group, a US strategic consulting firm and a former senior climate official in the Biden administration, said that cooperation in renewable energy between the US and the Philippines is "an important part of US soft power and public diplomacy." She said that now that Trump has withdrawn these aids, "it will inevitably give China an advantage."
Senator Win Gatchalian of the Philippines once supported "security reviews" of Chinese investments. However, he also admitted that Chinese suppliers are crucial for the installation of solar panels and wind turbines in the Philippines.
"We have no choice but to buy solar panels from China," Senator Gatchalian said. "They are the cheapest in the world."
According to reports, in April this year, the winning Chinese enterprise has delivered two 8 MW wind turbines to Alternergy Company for the Alabat wind power project. The report stated that upon completion of the project, it will become the largest wind farm installed in the Philippines.
"We can see that they are not only developing vigorously in the Philippine market but also in other international markets," Magbanua said in an interview. "They want to make a big push into the Philippine market and lead other Chinese manufacturers to develop here."
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