Gradual improvement and reactive intervention: China's policy pathway for developing the wind power industry

Since the early stage of wind power development, the Chinese government has attached great importance to the nurturing of the domestic wind power industry and the establishment of a domestic supply chain. This paper examines the trajectory of China's policy pathway by linking the evolution of policy packages with the changing operation states of wind equipment manufacturers (mainly upstream and midstream). It is found that the government selectively combined quantity-oriented policies, quality-oriented, and cost-oriented policies at different historical stages and that a gradualist approach was adopted by strengthening quality and cost regulations in a piecemeal fashion. Though this gradualist approach might risk regulatory gaps, business disputes, and financial stress along the supply chain, it also provides some buffer time for manufacturers to adapt to new quality standards and cost expectations through technological improvement, optimization of production scale, and supply-chain management. The subtle balance between the strengths and weaknesses of this gradualist approach has been centered around the government's capacity to constantly assess the conditions and reactively respond to the needs of domestic enterprises. An in-depth analysis of these dynamic relations helps to better comprehend China's industrial policy pathway and appreciate both its past achievements and future challenges.