State Grid Prods China to Restrict Foreign Smart-Grid Contracts
China's State Grid, which controls transmission for most of the country, pressed the government for new smart-grid standards that would hinder foreign investment, the Wall Street Journal reported on its China Real Time Report blog. The blog entry said that Wang Yimin, head of its smart-grid department, told the state-run China Daily "that the company hopes to use its role to help keep its dominance in grid building and equipment supply."
Companies such as General Electric and Siemens have anticipated large contracts since China was considered willing to spend $60 billion to $100 billion during the decade on smart grid projects. The blog said: "Where Chinese suppliers of conventional power equipment can sell cheaply, foreign players think they have an edge on cutting-edge technology. But if State Grid has its way, that edge could be dulled."
Wall Street Journal China Real Time Report blog, June 30.