Two-Pager: The EU's China challenge: Rethinking offshore wind and electrolysis strategy

Disclaimer: This two-pager has been prepared by the CKN Secretariat and should not be considered the work of the individuals listed as authors of the report.

Key Takeaways:

• China has become a world leader in offshore wind and alkaline water electrolyser technology, supported by market size, national policy and control over key parts of strategic value chains.
• The EU’s main offshore wind dependence on China currently lies in permanent magnets and rare earth mining, refining and processing, but future dependence may broaden as Chinese firms expand globally.
• European offshore wind and electrolyser producers remain competitive in some areas, but face financial pressure, high costs and an uneven playing field with Chinese manufacturers.
• Europe faces a strategic trade-off between limiting Chinese involvement to protect energy and national security, and using Chinese capacity to reduce costs and accelerate the energy transition.