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Few foreign firms participate in the Chinese services market, and those that do are limited to OEMs and some specialty ISPs. In 2011, foreign OEMs represented less than 15 percent of the market, in contrast to earlier years, when they controlled a majority of the Chinese market. Reportedly, many OEMs have left the market due to overcapacity and, to a lesser extent, protectionist policies.198 Industry representatives indicate that foreign OEMs in China do not compete directly with their Chinese counterparts; instead of trying to compete on low equipment prices, they instead compete on the cost of energy (which reflects not just the initial purchase price, but also performance and reliability). As a result, these firms are generally in competition with other foreign firms in China, rather than with Chinese firms.199 Only a limited number of foreign ISPs (e.g., resource assessment or consulting firms) operate in the Chinese market, which they reportedly find difficult due to the market environment and the experience of their customer base. Foreign service firms are unable to compete directly with Chinese counterparts due to higher costs, and also reportedly find it difficult to differentiate their services from those that project developers can supply in-house.200 198 Industry representative, interview by USITC staff, Beijing, May 17, 2013; industry representative, interview by USITC staff, Beijing, May 16, 2013; Li et al., “China Wind Energy Outlook,” n.d., 25. 199 Industry representative, interview by USITC staff, Beijing, May 16, 2013. 200 Industry representative, interview by USITC staff, Beijing, May 17, 2013; industry representative, interview by USITC staff, Beijing, May 16, 2013; industry representative, telephone interview by USITC staff, March 12, 2013. 4-30PDF Image | Renewable Energy and Related Services: Recent Developments
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