I. Introduction: Strategic Alignment between China and France in the Context of Global Energy Transition
1.1 Report Objective, Core Thesis, and Methodology
This report aims to provide France with a comprehensive strategic framework for addressing the challenges of global green industrial restructuring and converting the immense scale of the Chinese wind energy market into tangible economic benefits and technological competitiveness for France. Analysis indicates that, driven by global "Dual Carbon" goals, China—as the world's largest wind power market—offers an ideal "accelerator" environment for advanced French technology entry due to its growth potential (rather than simple replacement demand), comprehensive industrial chain support, and rapid technical commercialization capability.
The core thesis of this report posits that France should strategically avoid direct competition in high-competition sectors of the Chinese market, such as complete turbine manufacturing. Instead, it should focus on high-value-added technology fields, including Floating Offshore Wind Turbine (FOWT) system integration, advanced composite materials, and Smart Operations and Maintenance (Smart O&M). By exporting technology standards and Intellectual Property (IP), coupled with deep equity ties and strategic joint venture models, France can secure long-term, stable economic returns that effectively reinforce and "repatriate" investment into domestic Research and Development (R&D) and industrial clusters.
1.2 Global "Dual Carbon" Goals and the Strategic Foundation for Sino-French Energy Cooperation
China and France share a high degree of political commitment to addressing climate change and promoting energy transition. Europe has completed the legislative process for the European Climate Law, establishing an interim target of reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, and committing to achieving carbon neutrality by 2050. As a core European economy, France's own energy transition plan is ambitious and specific. According to the plan, France aims to build 50 offshore wind farms by 2050, achieving a capacity target of 40 Gigawatts (GW), and double its onshore wind capacity.
To support this transition, the French government predicts that investment, operation, and maintenance in wind energy alone will create 60,000 direct and indirect jobs by 2050. However, achieving this goal requires significant technological investment and accumulated market experience. The Chinese market, serving as the central hub of the global new energy industrial chain , provides the engineering challenges, scaled application environment, and resulting practical data that are essential external drivers for France to realize its ambitious domestic energy goals. Through deep cooperation in critical technological segments, France can leverage the scale effect of the Chinese market to accelerate the iteration and cost optimization of its own technology, thereby ensuring the sustained international competitiveness of French domestic industry.
II. China's Wind Energy Market: Scale, Trends, and Structural Demand Analysis
2.1 Overview of China's Wind Power Market Scale and Competitive Landscape
China possesses the world's largest and most complete new energy industrial chain, supplying over 80% of global photovoltaic components and 70% of wind power equipment. Driven by the continuous push of the "Dual Carbon" strategy and the "14th Five-Year Plan," China's wind power installation capacity targets are high, expected to reach 580 million kilowatts by 2025. This ultra-large market advantage, coupled with the resulting complete industrial chain, provides a powerful "accelerator" for the rapid commercialization of technology.
Nevertheless, the competitive landscape in the Chinese wind power market presents immense challenges for foreign enterprises. Domestic competitors already dominate the global market. For instance, in 2020, Chinese turbine manufacturers Goldwind and Envision Energy ranked among the global top four, with new installed capacity exceeding 10 GW each. Furthermore, manufacturers ranked 6th through 10th were entirely Chinese. As of 2023, Goldwind continues to hold the top spot among Chinese wind turbine manufacturers.
This domestic-led competitive structure is largely due to the extremely high cost efficiency and economies of scale generated by China's unique, ultra-large market. Therefore, it is strategically ill-advised for foreign companies to attempt price competition against Chinese firms in standardized turbine manufacturing and low-end components. France's strategic focus must shift from competitive areas to structural demand. Structural demand refers to high-precision, highly complex, and customized segments of the Chinese industrial chain that are not yet fully mature or have been neglected due due to the relentless pursuit of cost reduction. Leveraging European strengths in deep engineering experience, complex systems integration, and core materials science is key to France achieving differentiated competition.
2.2 Offshore Wind "Deep-Sea Shift": France's Core Technological Breakthrough
Within China's wind power development trends, offshore wind, particularly the shift toward deep and far-sea deployment, offers a clear technological entry point for France. Benefiting from ongoing policy support, China's offshore wind industry has grown steadily and has formed an industrial chain capable of supporting millions of kilowatts of new capacity annually. The move toward deep and far-sea development is a critical future trend.
Floating Offshore Wind Turbine (FOWT) technology is the key to unlocking deep-sea development. For countries with limited shallow waters, such as Spain, Portugal, Japan, France, and China, FOWT can significantly increase the total accessible offshore wind farm area. China is currently in the phase of transitioning from engineering prototype demonstration to commercialization, having completed five FOWT prototype demonstrations with a total installed capacity of approximately 40 MW. More importantly, projects like the Hainan Wanning Floating Offshore Wind Farm, with a total planned capacity of 1,000 MW (Phase I: 200 MW, Phase II: 800 MW), signal China's move toward scaled commercial development of FOWT.
The window for FOWT scale-up is rapidly approaching. The Chinese FOWT market is at an inflection point, transitioning from demonstration to commercialization. France, as one of the global leaders in FOWT technology (e.g., the successfully operational Provence Grand Large project), must deeply engage before China initiates large-scale commercial deployment, solidifies technical roadmaps, and establishes industrial chain standards. Once domestic enterprises achieve technological catch-up and localization through economies of scale, France's first-mover advantage will rapidly diminish. Therefore, the period between 2025 and 2030 is the strategic window for France to export core technological IP and engage in deep cooperation to secure a high-value share in this emerging sector.
III. Strategic Positioning and Core Competitiveness of the French Wind Energy Industry
France's competitiveness is based not on scale but on its technological depth and barriers in complex engineering, materials science, and industrial digitalization. These advantages perfectly align with China's urgent demand for high-reliability, high-complexity, and customized solutions in deep and far-sea wind power development.
3.1 The Technological High Ground: Floating Offshore Wind (FOWT)
France's technological advantages are primarily concentrated in the high-barrier, highly complex FOWT sector.
France has achieved a landmark breakthrough in floating foundation design and engineering. In June 2025, France's first Mediterranean floating wind farm, Provence Grand Large (PGL), became fully operational. The project deployed three Siemens Gamesa 8 MW wind turbines, totaling 25 MW of installed capacity. The PGL project not only marks a crucial technological breakthrough for France in floating wind but also adds a significant chapter to the global green energy landscape. Europe continues to explore novel structures in floating foundation design, such as multi-column, semi-submersible, and tension-leg hybrid structures, to enhance stability and economic viability in deep waters.
China faces challenges with equipment stability and reliability in the complex dynamic marine environment of deep-sea development, urgently needing to draw upon Europe's long-term experience and innovative designs in complex marine settings. France's accumulation of knowledge in FOWT system integration, dynamic stability control, and long-term O&M data is of immense value in helping China address its deep-sea engineering challenges.
3.2 High-End Supply Chain Advantages: Advanced Materials and Critical Components
As wind turbine blades trend toward larger and lighter designs, the demand for advanced composite materials continues to rise. The increased size of wind turbine blades (over 80 meters) is driving the demand for Carbon Fiber Reinforced Polymer (CFRP), which has become the largest single application market for carbon fiber composites. The demand for resin-based carbon fiber composites in the Chinese domestic market is substantial, reaching 111,200 tons in 2023. Although China's localization rate target is increasing, high-quality, high-performance CFRP materials still require imports, indicating a technological gap. French companies should focus on exporting high-grade, high-performance CFRP materials and related production technologies. Furthermore, given global environmental policy trends, France should promote the export and technology licensing of highly recyclable thermoplastic composites to establish an advantage in technical standards and environmental friendliness.
Beyond composites, the supply of critical marine components is also a potential area of strength for France. For example, Chinese high-end forging manufacturer Elite provided key flange forgings for the French PGL project, ensuring the safe and stable operation of the turbine structure. France can ensure the penetration of its core technology into the supply chain through joint ventures or technical cooperation in key component areas.
Additionally, the transmission challenges of deep-sea wind power impose higher requirements on high-voltage cable systems. With the development of offshore wind, European demand for high-voltage cables has surged, with French companies like Nexans, Italy's Prysmian, and Denmark's NKT actively expanding capacity to meet market needs. FOWT projects require technologically more demanding dynamic cables. France's advantage in cable design, manufacturing, and system integration can meet China's urgent needs for deep-sea power transmission.
3.3 Smart O&M and Digital Twin Solutions
In the Operation and Maintenance (O&M) phase of wind farms, Europe possesses mature industrial software and accumulated engineering experience. As deep-sea wind farms scale up, the complexity of asset management, predictive maintenance, and safety assurance systems increases exponentially.
France is accelerating the application of Digital Twin technology in the energy and power sector. As an emerging generic technology, the Digital Twin has become an indispensable new technological engine in digital transformation, especially suited for large, complex deep-sea wind farms. While China leads in hardware manufacturing, Europe holds years of accumulated industrial software and engineering expertise in the digital modeling and advanced O&M algorithms for large, complex wind power systems.
France should position Smart O&M and Digital Twin platforms as a high-profit, recurring revenue service export. By providing asset management, predictive maintenance, and safety assurance systems specifically designed for deep-sea wind farms, France can use digital technology to construct competitive barriers that are difficult to replicate in the short term. This strategic positioning shifts the focus of cooperation from "hardware export" to "data intelligence and high-value service export."
IV. Strategic Pathways and Business Models for France to Utilize the Chinese Market
To maximize the immense potential of the Chinese wind energy market, French enterprises must adopt diversified, flexible international strategies and achieve deep integration across investment, technology, and operations.
4.1 Path One: Strategic Joint Ventures and Deep Equity Ties (The "Dongtai Model" Upgrade)
The Jiangsu Dongtai Offshore Wind Project, a collaboration between Electricité de France (EDF) and China Energy Investment Group, serves as a successful model for French companies entering the Chinese market. This project was China's first Sino-foreign joint venture offshore wind project , with a total investment of approximately RMB 8 billion and an installed capacity of 500 MW . In the partnership, EDF Renewables and EDF (China) Investment Co., Ltd. jointly held a 37.5% stake . The project successfully achieved full-capacity grid connection and is expected to meet the annual electricity needs of 2 million residents .
The success factors of this "Dongtai Model" include:
Political Endorsement and Risk Hedging: The Dongtai project's cooperation agreement was signed under the witness of the heads of state of China and France, securing high-level political support . In the current complex international trade environment, elevating large energy cooperation projects to a national strategic level is the best risk hedging tool for French enterprises entering China, ensuring project stability and priority in policy, approvals, and grid absorption.
Experience Export: EDF not only provided capital but, more importantly, exported Europe's mature experience and lessons learned in offshore wind project development, financing structures, risk management, and grid integration.
France should target its next round of joint ventures at China's large-scale FOWT demonstration or commercialization projects (e.g., the 1,000 MW planning in Hainan Wanning) . Through this equity cooperation model, France can integrate Europe's accumulated long-term operational experience and technical standards in floating wind into China's scaled construction, ensuring stable long-term investment returns and mitigating market and operational risks.
4.2 Path Two: Structured Technology Licensing and IP Monetization
Technology licensing and IP monetization are crucial means for France to maintain technological leadership and secure sustained revenue. Key technologies for licensing include FOWT foundation design patents, high-voltage dynamic cable manufacturing processes, and advanced O&M software algorithms.
In terms of licensing structure, French companies should use technology as equity or adopt long-term royalty schemes to ensure sustained returns from technology transfer. However, the protection of Intellectual Property Rights (IPR) in cross-border technology transfer is a common legal concern for European companies seeking to utilize high-end technology and trade secrets in China.
French enterprises must leverage the latest Chinese legal framework to protect their interests. China's legal system has strengthened the protection of trade secrets, for instance, by punishing criminal acts that cause losses of over RMB 2.5 million to the trade secret owner with three to seven years of imprisonment. Technology licensing agreements must clearly define the legal conditions for trade secrets and specify protective measures, such as restricting access, using locks or other preventive measures for secret information carriers, using confidentiality markings, and signing non-disclosure agreements, to ensure full legal support.
4.3 Path Three: "Glocalisation"—A Flexible Strategy of Localization and Export
In the context of global industrial chain restructuring, France should adopt a "Glocalisation" strategy that combines local manufacturing with high-value-added exports.
High-End Material Export: France should maintain direct export of high-performance materials like CFRP that cannot be quickly replaced by localized Chinese capacity, leveraging French technological leadership to capture high profit margins.
Local Joint Venture Manufacturing and Cluster Development: French component suppliers (e.g., advanced materials, precision forging companies) should be encouraged to establish joint venture factories with Chinese partners on French soil, achieving local production of critical components and radiating supply to the European market. For example, a factory primarily producing wind turbine blades and nacelles has started construction in Le Havre, France. Chinese enterprises, such as the lithium battery manufacturer XTC and the French nuclear energy giant Orano Group, have invested in plants in Dunkirk, with a supply scope covering the entire European market. This cooperative model utilizes the scale effect of the Chinese market for technology verification and cost optimization, while simultaneously securing manufacturing and employment in France through joint venture manufacturing relocation or establishment, supporting the government's 60,000 job target.
4.4 Path Four: Collaborative Innovation and "Wind Power+" Integrated Development
Sino-French collaboration should actively pursue joint R&D in cutting-edge fields such as deep-sea engineering, the integration of marine oil & gas with new energy, and wind-powered hydrogen production. China is currently exploring the "Offshore Wind +" integrated development model, combining it with scenarios like aquaculture and offshore hydrogen production. French companies can offer integrated solutions and high-reliability systems, leveraging their experience in complex engineering to actively participate in these demonstration projects, such as "Offshore Wind + Storage" and "Offshore Wind + Deepwater Cages".
Furthermore, the Sino-French cooperation model can extend to third-party markets, enhancing the global influence of both countries. For example, China General Nuclear Power Group (CGN), EDF Renewables, and French company InnoVent signed a tripartite joint development and investment Memorandum of Understanding (MoU) to jointly develop InnoVent's 500 MW solar and wind power project in Namibia . Such international cooperation demonstrations not only consolidate the Sino-French partnership in new energy but also enable joint development of emerging global green energy markets.
V. Economic Benefit Assessment and Stimulus Effect on the French Domestic Economy
France's utilization of the Chinese wind energy market is not merely about securing short-term orders; the deeper strategic goal is to leverage the capital flow and technical validation derived from scaled application to reinforce France's domestic technological ecosystem and industrial capabilities.
5.1 R&D Return and Technological Ecosystem Strengthening
Stable technology licensing fees and joint venture returns will establish a capital repatriation mechanism, directly or indirectly investing in French domestic R&D activities, supporting initiatives such as the "Investment for the Future Program" launched in 2010. Policies like the Feed-in Tariff (FiT) can provide the most direct and stable market for wind power project development, encouraging long-term investment by wind companies in wind power technology R&D.
More importantly, the massive data and rapid engineering challenges (such as ultra-large blades, complex deep-sea environments) presented by the Chinese market will accelerate the practical verification and iteration speed of French FOWT and Smart O&M technologies. As the world's largest and most complete industrial chain, China's engineering scale is a testing ground that no single European country can provide. Through scaled application and continuous R&D investment in China, France can translate its FOWT and other technological advantages into the power to set global industrial standards. Technical licensing and investment revenue are the key "fuel" to sustain this high-end ecosystem and solidify France's leadership in green technology.
5.2 Contribution to French Domestic Industry and Employment
The employment stimulus effect of the wind energy industry is significant. The French Ministry of Ecological Transition predicts that investment, operation, and maintenance of wind power generation will create 60,000 direct or indirect jobs by 2050 . By attracting Chinese high-end component suppliers seeking European market access to invest and form joint ventures on French soil (e.g., related factories opened in Brittany and Cherbourg), France can link technology licensing with domestic job creation. This approach ensures that high-skilled R&D, engineering design, and complex component manufacturing jobs are retained in France, promoting the development of coastal wind power industrial clusters like Le Havre, and reshaping France's green industrial landscape through industrial clustering effects. Concurrently, the export of high-end services such as software, engineering consulting, and technical verification will also increase, offering higher profit margins and a more stable contribution to the trade structure.
5.3 Optimization of French Trade Balance and Fiscal Revenue
By focusing on the export of high-value-added technologies (such as FOWT IP) and high-end materials (such as CFRP), France can significantly increase the technological content of its exports, improving its overall trade structure. In the trade of Intellectual Property royalties, countries like Germany and the Netherlands have deeper cooperation with China, and France also benefits from this. Deepening technological cooperation will allow France to enhance its technological trade income.
More broadly, vigorously developing renewable energy will assist France in achieving its energy transition. Assessments indicate that the wind and solar power sectors generated €6 billion in revenue for the French treasury in 2021 and 2022. Capital repatriation and tax contributions resulting from Sino-French cooperation will continuously optimize France's trade balance and fiscal revenue.
VI. Risk Management, Policy Coordination, and Compliance Assurance
While the prospects for Sino-French wind energy cooperation are vast, French enterprises must conduct prudent assessments and effective management of potential legal and competitive risks when entering the Chinese market.
6.1 Legal Framework and Countermeasures for IPR and Trade Secret Protection
In cross-border technology transfer, Intellectual Property Rights (IPR) and trade secret protection are among the foremost concerns for European companies. Although China has enacted and implemented the Anti-Monopoly Law, which currently focuses primarily on market monopolistic behaviors such as mergers and price agreements, it is expected to gradually evolve towards anti-monopoly measures related to technology licensing. Concurrently, bodies like the European Union Agency for Cybersecurity (ENISA) have issued guidance documents on data protection and cloud computing security, which involve data localization requirements that may restrict data flow, increasing concerns over sensitive data leakage .
French enterprises must adopt multi-layered protective measures to safeguard core technologies:
Contract and Compliance: Technology licensing agreements must explicitly define the legal parameters of trade secrets and undergo strict compliance review to address potential anti-monopoly risks.
Physical and Digital Protection: In accordance with Chinese law, reasonable protective measures should include limiting the scope of personnel privy to the secret information, implementing locks or other preventive measures for secret information carriers, using confidentiality markings, employing passwords or codes for secret information, and signing non-disclosure agreements. Implementing these measures helps construct legally recognizable protective barriers.
6.2 Countering Localization Competition and Overcapacity Risks
The rapid perfection of China's industrial chain and the strong competitiveness of domestic turbine manufacturers could lead to a swift erosion of France's technological advantage . The outbound strategy of Chinese new energy companies has evolved from simple direct export or EPC to a combination of diversified models, including local plant establishment, local contract manufacturing, joint operations, technology licensing, and forming joint ventures.
The French corporate response must be continuous innovation and flexible cooperation models.
Sustained Innovation: France must maintain generational leadership in high-value-added sectors like FOWT, advanced materials, and digital O&M. Technological superiority is the foundation for maintaining negotiation leverage and long-term revenue.
Diversified Models: Employing a combination of diversified models such as local plant establishment, joint operations, and technology licensing allows for flexible adaptation to the characteristics of different Chinese regions. Furthermore, partnering with domestic Chinese enterprises to "go global together" enables shared market intelligence, risk assessment, and local legal and cultural knowledge, lowering the entry threshold and risk for new markets.
6.3 International Policy Coordination and Strategic Positioning within the EU Framework
The evolution of EU policy may pose a potential challenge to Sino-French cooperation. For example, a report from the European Council on Foreign Relations advised the EU to strengthen policy coordination and gradually reduce its dependence on China in green technology sectors.
When formulating its China strategy, France must position Sino-French cooperation as complementary and win-win, emphasizing that it exports "bottleneck" technologies and engineering expertise, rather than low-end capacity. This strategic positioning helps demonstrate within the EU that Sino-French collaboration not only advances the shared goal of tackling climate change but also provides more economic and efficient green solutions globally. High-level intergovernmental communication is necessary to ensure that French green technology exports and investments are seen as integral to promoting global energy transition and Sino-European environmental and climate cooperation.
VII. Conclusion and Action Recommendations
France's core objective in utilizing the Chinese wind energy market is to achieve technological and economic "repatriation," meaning securing continuous capital flow and engineering data from China's scaled application environment to reinforce France's global leadership in FOWT, advanced materials, and industrial software.
7.1 Policy Recommendations for the French Government and the EU
Establish a National Green Cooperation Fund: The French government should establish a dedicated fund to centralize and manage revenues from Chinese joint ventures and technology licenses, continuously investing in frontier technology R&D such as FOWT and Smart O&M to ensure France's global leadership in deep-sea domains.
Strengthen IPR and Anti-Monopoly Coordination Mechanisms: Establish a rapid coordination mechanism for intellectual property and trade secret disputes in high-tech green sectors during high-level Sino-French economic dialogues and Sino-European economic and trade dialogues. Furthermore, eliminating legal uncertainties in technology licensing requires proactive anti-monopoly compliance reviews.
Support Domestic Industrial Cluster Development: Use tax incentives and policy guarantees to attract Chinese high-end component suppliers seeking European market access to invest and form joint ventures within French domestic wind power industrial clusters, ensuring local job creation and technology transfer, and facilitating the soft landing of the 60,000 employment target .
7.2 Market Entry Recommendations for French Enterprises
Adhere to the "High-Value Trinity" Strategy: French enterprises must remain committed to FOWT system integration, advanced CFRP materials (especially thermoplastics), and Smart O&M services (Digital Twin platforms) as the three pillars for entering the Chinese market, avoiding direct competition in low-end turbine manufacturing .
Implement "Politics First, Business Second" Strategy: Ensure major technology cooperation projects receive high-level political support, adopt the Dongtai Model , and use equity ties (rather than simple sales contracts) to secure long-term strategic interests, diversify risk, and leverage the Chinese market's scale effect.
Establish a Technical Compliance and Risk Early Warning System: Build specialized legal and compliance teams focusing on Chinese IPR law, anti-monopoly law, and digital security regulations, ensuring all technology licensing and cooperation agreements are executed under compliant premises . Simultaneously, adopt a diversified financing system, expanding various financing methods such as export buyer's credit, M&A loans, and green bonds, to support the financial stability and risk management of overseas expansion.