No energy transition without China, says Siemens Energy CEO

Energy transition without China does not work, Christian Bruch, chief executive officer (CEO) of Siemens Energy, told reporters this week, as he stressed that trying to build a wind turbine without any Chinese supply in Europe will be close to impossible.

"The last thing I would do is to advocate something like departing or de-risking. We have a connectivity between the two regions that is fruitful and unavoidable," Bruch was quoted as saying by Reuters on Friday.

The CEO made the remarks as the European Union initiated last month subsidy investigations into Chinese wind turbine suppliers, the fourth probe targeting Chinese firms in just two months.

The manufacturing of wind turbines mainly relies on materials from China, most notably rare earths and permanent magnets, Reuters reported.

"Bruch's comments also indicate a divide between Germany's government, which has suggested companies cut their relative exposure to China, and the leaders of companies such as Volkswagen and BASF, which have increased their engagement," said the report.

There has to be a middle ground between full-on protectionism like in the United States and a free market, argued Bruch.

"I'm not in favor of blocking the European market. But I think we still need clear rules in terms of how companies are financed, where do they get guarantees from and what do they pay for it," he said.