Economics and ‘national security’ often pull in different directions. This is especially true when we look at relations with China.
Consider the strange case of the Scottish wind turbine project. At the end of March, the UK government blocked a planned Chinese investment in the Scottish Highlands to manufacture wind turbines on ‘national security’ grounds. The issue got lost in the fog around the Scottish parliamentary elections. But it hasn’t gone away. The Chinese have indicated that they will switch the plant from Scotland to Spain. The British partners who spent years negotiating the project, in good faith, are furious and are questioning the capricious nature of UK government decision making around ‘security.’
The planned Chinese investment, at Ardersier, to manufacture wind turbines was potentially the largest turbine factory in the world, employing 1,500 people with more in the supply chain. For British partners and the Scottish government, utilising China’s impressive ‘green’ technology was thought to be a safe and sensible form of collaboration. The project involved making the most technically sophisticated bit of the turbine – the nacelle – in Scotland.
I don’t normally warm to the Scottish National Party but I have some sympathy with the then Scottish Deputy Chief Minister and Economics Minister, Kate Forbes, who said the decision was: ‘simply, sabotage of Scotland’s industrial future’.
The £1.5 billion project involving the Chinese company Ming Yang was to be on a site on the Moray Firth once used to employ 4,500 people for oil and gas platform assembly. Ming Yang is recognised as one of, if not the, leading company in the world for wind technology where China is the dominant producer with 70% of global wind capacity. Ming Yang is already a trusted partner of Octopus Energy, a reputable and popular British energy supplier.
Political dinosaurs in Britain and the USA may regard wind power as a ‘woke’ response to the ‘climate hoax’. But the Chinese long understood and planned for its development as a source of cheap, secure and clean energy. They are now being vindicated, not least by the disruption to oil and gas supplies from the Gulf. So, why is it a problem to utilise Chinese investment and technology to develop our own wind-power sector?