Over the last several years we have chronicled the meteoric rise of the Chinese wind industry, which has experienced an unprecedented ramp up in capacity since January 1, 2006, when the Renewable Energy Law of the PRC went into effect. At the ACORE RETECH 2010 conference earlier this year, which I co-chaired with Li Junfeng, the Deputy Director of the Energy Research Institute of the National Development and Reform Commission, I half-facetiously joked that in wind equipment manufacturing the Chinese finally may have found an industry where runaway capacity development should not be feared. I thought that given the immense needs of the world for renewable energy, the Chinese had finally lighted on an industry where there was virtually no downside to unbridled output. No such luck.

In addition, all Chinese wind turbine manufacturers (including to a lesser extent the "big three" — Sinovel, Goldwind and Dongqi) rely to varying degrees on technologies that they must acquire from abroad, which puts even greater pressure on their profitability.