Emerging Market Watch: Chinese and Spanish Collaboration

Europe and Asia have again collaborated on an alternative energy project, this time between China and a Spanish company. Gamesa, the second largest manufacturer of wind turbines, will provide China with turbines in a deal worth $190 million.

This deal may be indicative of growing consolidation and international deals as wind power companies meet rising international demand. Indicating the significance of such a collaboration, the deal was signed in Madrid in the presence of Spanish Prime Minister Jose Zapatero and Chinese President Hu Jintao, in conjunction with a series of accords confirming a “strategic” partnership between the two nations.

As the political and financial stakes increase in the alternative energy sector, particularly in fields like wind energy, it will become increasingly critical for U.S. companies to get become involved in these large international deals. Hopefully the Gamesa-Chinese collaboration will serve as an example for American companies to follow.