Knowing that Matsk has become an employee of a Chinese company, Bovard and Emmeline are not interested in investigating it.A project, even the boss has been dug up, what this project can do, they are completely imagined.Previously, Heinzl said that Captain Cook's project is progressing smoothly, has completed the overall design of the sixth generation platform, and now it seems completely misleading, it is no wonder that Biltu will abandon European companies and turn to China to find a solution.

Back at the headquarters of the European Union, Bovard summoned Heinzl and set himself up for talks with Matsk as soon as he met.Heinzl knew that his previous blind words had been punctured, but did not mean a little embarrassed, but said indignantly to Bovard: "Mr. Bovard, now you must know how shameless the Chinese are?"They're spending a lot of money to pry our corners and have European engineers at their service."

“However, this does not violate EU law.”Bovard said.

Heinzl said: “This just shows that the EU law is flawed and that this set of laws does not protect European interests at all.”

“Unfortunately, we are not responsible for legislation.”Bovard reminded.

“Maybe.”Heinzl also knows that it makes no sense to say to Bovard, that legislation is a troublesome matter, and Heinzl does not see his ability to change EU law.He told Bovid: “Mr. Bovid, I think there are some necessary measures for the EU to take to limit China’s infiltration of Europe, and if they do, Europe will soon become a second-rate country.”

Bovard nodded and said, “Heinzl, I feel the same way.But free trade is the idea of Europe, and we cannot protect trade as the Americans do.”

“We are not protecting trade.”Heinzl said, “We’re just retaliating against countries that violate market rules.”In the past 20 years, the Chinese have taken too much profit from us through various illegal means, and I think it is time to change all that.”

“Hmmm...” Bovard answered uncompromisingly, motioning Heinzl to continue.

Heinzl said: "In the case of the sixth generation of rigs, Chinese technology was stolen from our European companies.They hired engineers who left from European companies, and these engineers brought the technology of European companies, which is the key to the Chinese being able to quickly grasp the technology.We should combat such acts.”

“We are very willing to do that, but Biltu warned us that if we ban them from importing drilling equipment from China, the oil supply in Europe will be affected, and the result will be unbearable for Europe.”Bovard said.

“What if it’s not a ban on imports, but just a tariff increase?”Heinzl asked.

“The result is the same, Biltu won’t accept it that way.If the EU imposes high tariffs on this import, Biltu will take the EU to court.”Bovard said.

Pumay company is a European company, Biltu is also a European company, in order to protect the interests of one company and let the interests of another company suffer, this company is definitely going to be noisy.The right to speak of oil companies is also not to be underestimated, and Boyvad cannot ignore the attitude of Biltu.

Heinzl did not know this, and Bovard pointed out to him the question of Captain Cook's project, and he knew that there was no room for manoeuvre.He made this suggestion at this time, but to lay the groundwork for the later requirements.Negotiation is like this, you can first mention some very excessive requirements, and then after the other party refuses, and then put forward a slightly excessive request, so that the other party is not good to refuse again.

“What does Mr. Boward mean that in the European Union, oil companies are more important than manufacturing companies?”Heinzl asked.

Bovard would go and carry the pot, and he shrugged and said, “What I want to say is that you are equally important.”But you've wasted so much time on the rig, and it's no wonder Biltu is thinking about working with the Chinese."

“I understand the difficulties of the European Union.”Heinzl said, “However, I think the EU can use this project to do some deals with the Chinese.”

“What deal?”

“In exchange for opening up the offshore oil equipment market, in exchange for the opening of the wind power market to European companies.”

“Wind power?”“When did China shut down the wind market for us?”

“It is true that they did not prohibit European companies from participating in the construction of their wind farms, but they stipulated a strict localization ratio for wind power concession tenders, requiring that the degree of localization of wind power projects built in China must be higher than 50%, and we think that this provision is unreasonable.”Heinzl said.

Bovard nodded: “I know about this, the EU has also been in talks with China about this matter, I mean, we are still talking about it.”However, the Chinese claim that their wind farms are subsidized by the government and therefore have the right to request localization.At present, there are great differences between our two sides on this issue, which cannot be resolved in a short period of time.”

The WTO rules are a complex system.In terms of general principles, a WTO contracting State should grant foreign enterprises national treatment, that is, they should not discriminate against foreign enterprises in the procurement of goods and services.Under such a principle, the mandatory regulation of the proportion of localization is illegal.

However, the WTO provides an exception to the above provisions, that is, it involves the situation of government procurement, and the domestic government can adopt the priority policy of domestic goods.The construction of wind farms is a commercial act, not a government procurement, but wind power Internet access is to enjoy government subsidies, so it has the characteristics of government procurement.

As for wind power subsidies, it is also not a violation of WTO rules.Because wind power is a renewable energy source, in order to control greenhouse gas emissions, the international community encourages countries to vigorously develop renewable energy.As an incentive, Governments can provide the necessary subsidies for renewable energy.

EU countries also have a subsidy policy for wind power, the Danish Ministry of the environment since 1979 to provide 30% subsidies to wind turbine buyers, and later subsidies in the feed-in tariff, which contributed to the development of the Danish wind power industry.

China’s wind power industry started late.In the 1980s, when Europe began to develop wind power on a large scale, China built only a few small-scale experimental wind farms through the introduction of technology.In the 1990s, China actively promoted the localization of wind turbines, and introduced the digestion and absorption of foreign wind power manufacturing technology through joint ventures with foreign wind power manufacturers, and gradually formed the ability to independently develop and design large-scale fans.But at this stage, the scale of wind power construction in China is still insignificant compared with Western countries.In 2000, the world's total installed wind power capacity was 17,800 megawatts, and China had only 344 megawatts, accounting for 2% of the world.

After entering the new century, China has accelerated the pace of wind power construction due to environmental pressure and global requirements to reduce greenhouse gas emissions.In 2002, the National Development and Reform Commission began to implement the bidding policy for wind power concessions to promote the construction of large-scale wind farms.In the following years, China's wind power installed capacity grew at an annual rate of 100%, and by the end of 2017, China's wind power installed capacity reached 188GW, more than 500 times that of 2000, and the proportion of global wind power installed capacity rose to 35%.

That is to say, in the wind power concession bidding policy, the localization rate of wind turbines is not less than 50% requirements, the purpose is to promote the development of domestic wind power equipment, lest this huge industry completely fall into the hands of foreign enterprises.

Europe's wind power equipment industry is very developed, therefore, the Chinese government's policy, the EU is naturally very resistant, and thus made representations to China's policy, that this requirement violates the WTO provisions of the national treatment clause.The Chinese government claims that it is a common practice for governments to encourage clean energy and energy conservation and emission reduction through government intervention, and that government-subsidized projects can impose localization rate requirements, which does not violate WTO rules.

Both sides have been wrestling on this issue for a long time, and the visuals will continue to be tugged.The World Trade Organization is actually a place of mutual tugs.The WTO rules sound very tall, but they are actually patching, because these rules have long been drilled by countries, and can only be maintained by continuous patching.

The demand for localization rate in the development of new energy industry is not limited to China.In 2009, the Ontario Electricity Authority of Canada issued a provision to provide a certain degree of government subsidies to power plants that use renewable energy to generate electricity, including special provisions for enterprises using solar photovoltaic power generation and large-scale wind power generation, the premise of government subsidies is that they must buy a certain number of locally manufactured products, called "local content indicators" when developing and building power generation facilities.

In 2010, Japan and the European Union respectively attacked the provision in Ontario and eventually resorted to the WTO dispute settlement body.After several years of tugging, the WTO finally ruled that Ontario’s rules were in violation of WTO rules, but also acknowledged that the issue was so complex that the case could not be applied simply to other cases.

Bovard is not directly involved in the dispute between the EU and China over new energy issues, but he knows a little of the difficulty.Listening to Heinzl talk about it, he naturally wanted to explain one or two.

Heinzl said: “We have been watching the negotiations between the EU and China.We feel that the EU is too weak in the negotiations, and the Chinese are obviously delaying time in order to win the opportunity to develop domestic wind power equipment.I suggest that the EU should bundle offshore oil and wind power equipment, and if the Chinese insist on a 50% localization rate on wind power imports, we can also require that the marine oil equipment imported from China must include 50% of European products.

“The bondage?”When Bovard’s eyes lit up, he found that it was indeed a good idea.