User:J3ssicachoi/Electric motor manufacturing industry in China

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The electric motor manufacturing industry in China is one of the most lucrative and fast-growing industries around the world. As the world starts to shift from the wide-spread use of fossil fuels to electric energy, the global electric motor sales market has been growing steadily and is estimated to grow up to $232.5 Billion by 2028.[1] Electric motors transform electric energy to mechanical energy, which is then used in a multitude of industries. The boost in global electric consumption and use of electrical equipment has led to the growth of the Electric Motor Manufacturing Industry all over the world[1]. Within this growing industry, global companies are competing to manufacture the most energy efficient and cost efficient electric motors to export. In order to power the great economic growth and technological advancements China has been experiencing over the past three decades, the country has been producing their own electric motors in addition to importing them. In particular, over the past sixty years, China has shifted from exporting raw materials for these machines to actually manufacturing them domestically. Despite China's current high energy intensity, the country has improved drastically from 1980 to 2010 with energy intensity per unit of GDP dropping around 70%[2]. This achievement was a result of China's energy efficiency improvements from new technology and policy mandates, and structural shifts from manufacturing to servicing in China's economy[2].

History[edit]

The first DC electric motor was invented in 1832 by British scientist William Sturgeon and the first AC electric motor was invented in 1855 by Italian inventor Galileo Ferraris. Following the first developments of electric motors was a multitude of other scientists, mainly from the Western countries, who refined the motors and began to use them for industrial purposes. It was not until much later that the Eastern countries, including China, began manufacturing their own electric motors. Before China's first electric motor manufacturer succeeded in establishing a domestic market, the country imported large-sized motors from European manufacturers such as Swedish electrical equipment company ABB and German engineering company Siemens [3]. These European companies began exporting their large-sized motors to China after the country implemented economic reforms in China in the early 1990s[4]. China is now able to domestically produce their own large-sized motors for industrial use. However, China's electric motor manufacturing industry mainly focuses on the manufacturing of smaller-sized motors that can be sourced by renewable energy. China's small-sized low-voltage electric motor market is expected to grow at a compound annual growth rate of 2.6% during 2019-2025[5]. This growth is attributed to the need for new motors that can automate and speed up manufacturing processes in different sectors. The first electric motor manufacturers in China received subsidies and government help to create products that were competitive with the global market[6]. As China rises up as the largest producer and consumer of electric vehicles, the electric motor manufacturing industry in China continues to focus on creating electric motors for these new vehicles.

Use of Electric Motors in China[edit]

Electric Mobility[edit]

One of the many growing industries in China that use electric motors is the electric vehicle industry. With global efforts to cut down on fossil fuels and non-renewable energy, many countries are shifting to electric mobility - with China taking the lead as the largest producer and consumer in the industry. According to the IEA, "China is expected to account for 50% of the global passenger electrical vehicles by 2025"[7]. In fact, already most of the world's half a million electric buses are located in China[8]. Due to the thousands of electric motor manufacturers in China, the electric vehicle industry is able to thrive on domestically produced motors. As the Electric vehicle industry in China continues to grow, the number of Chinese electric motor and motor controller manufacturers have also grown[9]. Despite the growing number of manufacturers in the industry, it does not seem like the growth will be slowing down any time soon. However, as the concentration of the market increases, the gap between electric motor companies also increases, with name brands increasing in sales. In the first half of 2018, 405,000 electric motors were supplied by 160 manufacturers for China's new energy vehicles[9], and the number continues to grow each year. China's push for new energy vehicles continues to incentivize electric motor manufacturers to look for competitive new technology as the vehicle itself depends on AC / DC electric motors.

Industrial[edit]

A large portion of the growth in China's small-sized low-voltage electric motor market is due to an increased demand for industrial use. These low-cost quality electric motors are used in small to medium-sized rolling mills, metal cutting machines, industrial machinery, and generators[10].Other common industrial applications include compressors, fans and blowers, heavy-duty equipment, HVAC systems, crushers, pumps, and lathes[11].

Applications of Electric Motors in Specific Industries[edit]

Electric motors are made for pumps which are utilized for water supply and drainage in agriculture, transportation of bleach in the textile industry, transportation of pulp in the paper industry, and for other purposes in the shipbuilding, food, petroleum, and chemical industry[12].

They are also in air compressors which are utilized in automation equipment, vehicle braking, the food industry, pharmaceutical industry, metal industry, and more[12]. Electric motors in industrial fans are utilized in the metal industry, petrochemical industry, electric power industry, rail transit industry, textile industry, ship industry, and more[12]. In addition to these industries, there are still more than twenty potential future industries that may utilize these industrial fans in the coming years. Other additional industries that electric motors are applied to are transportation, infrastructure, mining, aviation, woodworking, furniture, and more.

Top Electric Motor Manufacturers in China[edit]

Out of the thousands of electric motor manufacturers in China, there are a few top companies that are comparable with foreign technology and quality.

Harbin Electric Corporation[edit]

Harbin Electric Corporation is the combination and reorganization of Harbin's three power factories: Harbin Boiler Co., Ltd, Harbin Electric Machinery Co., Ltd, Harbin Turbine Co, Ltd. The company is known as the "eldest son" of China's equipment manufacturing industry and has made national history through manufacturing of equipment for different types of power[13]. The company boasts their impact on the global market as their products have been widely exported to many nations including the U.S., Pakistan, India, and DPRK. They also have the "the longest history in research and development of large-sized DC motors" in China[13]. These DC motors are used to convert electrical energy to mechanical energy and are widely used by many other groups such as Baogang Group, Shandong Zhaojin Group, and more. The Harbin Electric Corporation has also created relationships with other leading global electric equipment companies from 12 difference countries such as the United States' General Electric, Switzerland's ABB, and Japan's Hitachi[14].

Shanghai Electric Machinery[edit]

Shanghai Electric was founded in 1949 and has been manufacturing motors and generators for over 70 years. According to their website, the company's main products include large and medium-sized AC & DC motors which are exported to more than thirty different countries[15]. Throughout their long history, many key political leaders such as Mao Zedong, Jiang Zemin, and Zhu Rongji visited the Shanghai Electric Machinery Factory[16]. Today, the company's AC and DC motors account for one-third of China's national motor industry and is becoming a widely respected international company as well[14].

Dongfang Electric[edit]

Dongfang Electric is a state-owned manufacturer and was founded in 1984. The company, which is headquartered in the city of Chengdu, in Sichuan Province, has many different enterprises, each focusing on a different type of power and located in various cities around the country. The company exports their products to nearly eighty difference countries including the United States, Canada, India, Pakistan, Vietnam, Sweden, Brazil, and more[17]. In addition to manufacturing solar power equipment, wind turbine units, nuclear power units, and environment-friendly energy units, the company also manufactures electric motors[17].

Wolong[edit]

The Wolong Company offers a multitude of products ranging from motors for electrical bicycles to home appliances such as air conditioners and washing machines[18]. The company's most popular products have a market share of more than 20% in China and the company is widely recognized as "China's Famous Brand" amongst nationals[14]. Amongst Wolong's many products, electrical motors for passenger, small logistic, and large commercial vehicles are also very competitive in China's electric vehicle market[19]. Even outside of their success in the domestic market, Wolong's electric motors are used in foreign projects. For example, within the home appliance industry, Wolong's motors are used in Japanese Mitsubishi Electric commercial air conditioning units, Argentinian Alladio washing machines, and Daikin outside air conditioning units in Thailand[20]. In March of 2020, Wolong Electric acquired GE's small industrial motors business which puts them at a leading position for market share[21].

Other Companies[edit]

Other major electric motor manufacturers in China include Johnson Electric, Lianyi Motor Company, Huali Electric, and more.

Environmental Challenges[edit]

Environmental Impact - Global[edit]

Globally, electric motors make up about 40% of electricity consumption and 70% of industrial electricity consumption[22]. If manufacturers fail to improve energy efficiency of the electric motors, electric consumption may double by the year 2030 and will have serious implications on the environment. Most of the environmental impacts within the lifecycle of an electric motor come from when it is utilized and when it is disposed or recycled[22]. Only up to 5% of environmental impact comes from the manufacturing of the electric motor and the rest comes from its use and disposal. These numbers are crucial to manufacturers of electric motors because it is up to them to manufacture quality motors that minimize its environmental impact. Minimizing the environmental impact of these electric motors is becoming increasingly more important as the demand for electric motors continues to grow globally. With more electric motors utilized in everyday items, the whole world will be wasting energy that could potentially be used elsewhere if the products are not energy efficient. Due to the fact that electric motors only convert electric energy to mechanical energy, the electric energy input also needs to be sourced by something else. The greatest challenge manufacturers face today is not only about replacing carbon, but is about balancing high efficiency while maintaining low costs in the manufacturing of electric motors[22]. While currently manufacturers only pay for energy costs, it is possible that in the future carbon will be taxed to address the issue of environmental impact. In order to reduce their costs, some electric motor companies have already committed to going carbon-neutral within a few decades. Going carbon-neutral requires for companies to know the carbon-footprint of their products, and educating the consumers about the carbon-footprint[22].

Environmental Impact - China[edit]

The majority of China's electricity is powered from coal. This means that the average amount of carbon dioxide per unit of energy is higher than developed countries. China is the world's largest consumer of coal and 72% of their electricity is sourced from coal[23]. In fact, China's coal consumption has been greater than the rest of the world combined since 2011[24]. This is due to different reasons such as heavy manufacturing and a lack of market signs to motivate energy efficiency in certain industrial sectors[2]. After China's admittance to the World Trade Organization in late 2001, the country had an increase of CO2 emissions while other main trading partners such as the United States, Germany, and Japan had decreases in their carbon emissions[25]. This is an example of the "pollution haven effect" which describes how strict environmental protections in developed countries push carbon-intensive and polluting production to developing countries that do not have as strict environmental protections[25]. However, if China is continue its economic growth while seeking to reach carbon neutrality by 2060, the country will need to implement policies and standards to protect the environment. China's most important export industries, electronic machinery and industrial machinery, both make up the most carbon emissions. Both need to be addressed by stricter regulations as well as higher standards for electric motors which can reduce the amount of energy wasted[25]. The main contributor to China's export growth value and tremendous economic growth was carbon footprints and China's carbon footprint continued to exacerbate even after admittance to the WTO. The relationship between export growth and carbon emissions increasing after entering the WTO, is evidence that China's growth patterns are driven by high environmental factors and are unsustainable in the long run.

As the world's greatest consumer of coal, the country also emits the most carbon-dioxide into the atmosphere. The damaging effects of carbon dioxide and other greenhouse gases into the earth's atmosphere are widely known as a major contributor to climate change. Other environmental effects of electricity generation include but are not limited to impacts on ecosystems, land use for power generation, discharges of pollution into water bodies, and generation of solid waste[26]. In a step to address the environmental impact of electricity sourcing, there has been a decline in China's use of coal and an increase in more renewable energy such as natural gas and nuclear power[23]. Despite the move towards renewable energy, it is predicted that fossil fuels will continue to make up most of China's electricity generation in 2040[23]. As part of the Paris Agreement, China committed to reach peak carbon-emissions by 2030. Even though their commitment fails to adequately address the severity of the climate crisis, the government has been pursuing high-quality green development[27]. In addition to their goal for 2030, China has also been setting another goal to reach carbon neutrality before 2060. The country understands that in order to reduce carbon emissions and meet these goals, there must be measures to improve energy efficiencies in their major industries.

A way China is addressing the environmental impact of their electric energy use is by pushing for greater efficiency of electric motors. China's industrial sector is the largest consumer of coal and in 2018 it accounted for 95% of the country's coal use[24]. Electric motors account for 60% of China's total electricity consumption in the industrial sector. However, the actual operational efficiency is around 10-30% below global competitors depending on the specific industry[27]. This means that China is wasting around 10-30% of energy that could potentially be used elsewhere. Despite the widespread adoption of electric motors in various industries, many consumers as well as producers are unaware of the potential to save energy with new innovations of these electric motors.

Switchasia[edit]

Switchasia is just one example of how the government is addressing the environmental impact of energy use by educating Chinese manufacturers and producers about energy-efficient electric motors. Switchasia is a project implemented by the UN environment program that aims to improve the environmental performance of products manufactured and used in Asia[28]. From November of 2009 to November of 2011, Switchasia implemented an "China Motor Challenge" to mitigate climate change by promoting high-efficiency electric motor products in China. Their objectives for the China Motor Challenge included "reduction in energy consumption and CO2 emissions, transformation of the market to rely on high efficiency electric motors and motor system components, promotion of best practice in the design and application of energy-efficient motor systems, promotion of energy service companies and their services, [and] increased exports in Chinese goods that meet international standards"[29]. In order to meet these objectives, the program held workshops for consumers of motor systems and educated them about how to efficiently use these electric motors and who could supply energy-efficient motor systems. The program expected that at the end of the three-year project, 400 major industrial users will improve the operating efficiency of their electric motors[29]. In addition to educating consumers, the project also focused on the producers of electric motors and how they can comply with international standards in their company. By participating in this program, three hundred producers established partnerships with one another which could contribute to promoting change throughout the supply chain. Other target groups of the China Motor Challenge were service providers and relevant policy-making bodies. At the time when this project was implemented, China's national energy efficiency standards for electric motors were not up to international standards set by the EU. Therefore, they made it a priority to lobby for higher standards that could remove low-efficiency electric motors from the market.

The China Motor Challenge seems to have had an impact by educating and creating a network of consumers, producers, service providers, and the general public that promotes energy efficiency in electric motors. According to Switchasia's impact sheet, "more than 1,000 industrial motor system users and 300 energy service companies" took part in their workshops and registered as members of the China Motor Challenge club. Of these members, four hundred upgraded their electric motor systems to high-efficiency electric motors, and therefore protecting the environment[29]. Even if the others that attended the workshops did not upgrade their systems, there were still 300 producers that left with new knowledge about international standards and the latest developments in electric motors. Although the China Motor Challenge itself is completed, all the project structures remain intact and the China National Institute of Standardization, which in charge of setting the Chinese energy efficiency standards, will take over the databases and websites that members will still have access to.

Environment Impact - International Relations[edit]

Despite having a large growing domestic industry for electric motors, the government is also looking to international brands to help with the efficiency of electric motors. Swiss electric equipment company ABB plans on introducing their new technology in response to China's commitment to more green development and reduction of emissions. The president of ABB, Morten Wierod has commended China's recent decision to change the national standard of efficiency level in electric motors saying, "This latest legislation on electric motor efficiency is an important new step in driving down emission"[27]. The piece of legislation Morten Wierod is referring to is China's new national standard which requires electric motors to have a minimum efficiency level of IE3 starting June 1, 2021[27]. Although Swedish brand ABB has already been manufacturing IE3 level electric motors in China since 2013, they plan on introducing even more efficient and environmentally friendly motors. According to the company, 75% of the industrial electric motors in China are used for machines that have potential for major improvements in efficiency - showing the need for growth[27]. In addition to electric motors for different applications, ABB has also been introducing electric chargers in China following the massive growth in electric mobility sales[30]. As a part of China's 14th five-year plan, the country is looking for growth in smart urban infrastructure and digital electrical solutions for these urban cities. To match these demands, ABB group plans to seize more market share by focusing on industrial energy efficiency. Morton Wierod stated that "industrial energy efficiency, more than any other challenge, has the single greatest capacity for combating the climate emergency. It is essentially the world's invisible climate solution...by far the biggest impact we can have on reducing greenhouse gas emissions is through our technologies, which reduce energy use in industry, buildings and transport"[31]. In his view, the greatest way of addressing the climate crisis is by improving technologies to make energy use more efficient. Knowing that electric motors account for 60% of China's industrial energy consumption, Wierod is essentially focusing on the need to improve electric motor technologies to make up for the loss of 10-30% of potential operating efficiency. The higher quality technology ABB is able to offer China helps establish an international relationship between the Sweden Company and Chinese producers that could lead to more collaborative work on green technology in the future.

Another European brand that has been implementing green change in China's energy industry is Schneider Electric. Originated from France and is now a multinational company, Schneider Electric provides energy efficient solutions worldwide. Schneider Electric is an example of how international relations are created in the energy markets, as large corporations like such create extensive branches in other countries like China and the United States. Chief strategy and sustainability officer of the company, Olivier Blum stated that carbon emissions are "essentially an energy issue"[32]. In order to address the environmental impacts caused by carbon emissions and reach China's goal of peak emissions by 2030 and carbon neutrality by 2060, a few large industrial European companies like Schneider Electric have been implementing new strategies and methods for Chinese businesses[32]. Some of these methods include but are not limited to "digital solutions, green electricity, energy efficiency, new carbon management technologies, strengthened innovation, reduced use of water and energy, waste reduction, and business diversification"[32]. Schneider Electric has already made moves in China to help reach their goals by making thirteen out of their twenty-three manufacturing facilities go completely green in China. In order to tackle climate change, these companies have been looking at each step of the energy cycle, including the efficiency of transduction in electric motors.

All these companies originated outside of China help promote the country's green and sustainable energy efforts under the Belt and Road Initiative (BRI). China's State Council Information Office released a paper titled "Energy in China's New Era" in December of 2020 documenting the country's efforts and goals for reformed energy consumption. Under their "New Energy Security Strategy", the office stated that part of their strategy is to have cooperation with other countries in order "realize energy security in an open environment"[33]. China's intent for the Belt and Road Initiative is to open up its doors to other countries for mutual benefit through gaining access to both domestic and international markets. In their paper, China's State Council Information Office stated that the Belt and Road Initiative was also going to be used to promote green energy and improve energy infrastructure connectivity[33]. According to the Office, China has been implementing various measures to ensure the country is participating in the global effort of conserving energy while actively facilitating international trade in the energy sector. By October 2018, Chinese companies participated in around 6000 infrastructure projects under the Belt and Road Initiative[2]. The accumulation of these projects is enormous and the amount of energy required to carry them out is also extremely large in scale. Therefore, in order to protect the environment, it is imperative for greener policies as well as high-tech electric motors to power these projects and save as much as energy as possible. In Xi Jinping's speech at the first belt and road summit in May of 2017, he calls for international partners to join him in establishing an international coalition for green development under the belt and road initiative. Xi Jinping and many other leaders joined hands during the first summit and committed to greener cooperation that follow the commitments made in the Paris Agreement. A large portion of the projects under the belt and road initiative are related to the energy sector and has helped China become one of the prominent leaders in exporting energy infrastructure. The Mercator Institute for Chinese Studies' has a database of over 2000 Chinese projects abroad and they have found that around two-thirds of China's spending on the belt and road initiative projects were related to the energy sector[2]. This is significant because if Chinese companies are providing energy infrastructure abroad, they are also implementing their technologies as well as strategies to other countries. If China prioritizes green energy and energy efficiency, then through these projects, there may be reduction of carbon emissions as well as electricity use. However, if China does not prioritize energy efficiency, then the problem of climate change may exacerbate. One study shows that the latter may unfortunately be happening. The study found that "most Chinese deals in energy and transportation are still tied to traditional sectors and do not show a strong alignment with the low-carbon priorities included in BRI governments' nationally determined contributions"[2].

China's Push for Electric Motor Vehicles[edit]

In the competitive global market for electric motor vehicles, China is pushing for the manufacturing and sales of electric vehicles rather than fuel-based vehicles to address the climate crisis. Completely electric vehicles that run on AC / DC electric motors do not contribute to air pollution like regular fuel-run cars do. Although industrial energy consumption is the greatest contributor to carbon emission and pollution in China, fuel-based cars and their internal combustion engine also accumulate large impacts on the environment. However behind China's push for electric motor vehicles in the name of "greener technology", it may be the case that electric vehicles will result in more carbon emissions because the majority of electricity in China is generated by coal[34]. In addition to carbon pollution, EVs may lead to greater exposure to poisonous gases such as sulfur dioxide and nitrogen oxides because power plants are China's greatest emitters of these gases.

However there are optimistic lookouts for the future of EVs in China as the country is planning on decreasing their dependency on coal-based electricity generation. The country is looking at renewable energy sources like hydro and wind resources for their long-term goals of shifting to carbon-neutrality. Their short-term goals are to improve energy efficiency of coal-based plants by 40% in 2030[34]. This can be achieved by manufacturing more effective electric motors that do not waste electricity but have high technology that fit the purposes of electric motor vehicles.

Campaigns & Policies Addressing Environmental Impact[edit]

Since 1978, when China first seriously addressed environmental issues, the country has administrated numerous measures and national-level campaigns to reduce pollution. On January 1, 1997, the central government shut down over four thousand firms in the Huai river basin overnight because they were polluting the water source[25]. A few years later, limits were placed on firm sizes for the top fifteen polluting industries so that they could focus on upgrading their technology as well as promote economic growth[25]. In 2017, there was a third national campaign that focused on pollution-heavy areas and cracking down on local. officials that failed to uphold standards. These campaigns were effective in the short run, as they eliminated thousands of polluting firms and corrupt local officials. However, it failed to address the ways in which whole industries were polluting the air and did not lead to any sustainable systemic changes[25].

Policies have and continue to play a crucial role in improving energy efficiency in China's energy use. China has had mandatory energy efficiency policies in most five-year plans since the 1980s and in 2017, more than 60% of China's energy use was limited by China's mandatory policies[2]. Energy efficiency and energy intensity is directly related to the efficiency of the technology that generating energy; namely, electric motors. Energy efficiency has been a long-term goal for the Chinese government since the 1980s and the past three five-year plans (spanning from 2006-2020) all had mandatory national targets for energy intensity levels.

China's Past Five-Year Plans That Include Policies for Reducing Energy Intensity[2]
Five-Year Plan (Years) What Level of Mandatory National Target for Energy Intensity
11th Five-Year Plan (2006-2010) Reduce Energy Intensity 20% below 2005 levels by 2010
12th Five-Year Plan (2010-2015) Reduce Energy Intensity 16% below 2010 levels by 2015
13th Five-Year Plan (2016-2020) Reduce Energy Intensity 15% below 2015 levels by 2020

The way in which the government reached their mandatory national targets was by focusing on four main policy tools: annual goals, provincial targets, government spending, and regulations and standards. In addition to targets for every five years, the Chinese government implements specific annual goals to reach every year. For example, in March of 2017, the government announced a new annual goal to reduce the energy intensity by 3.4% by the end of the year. The following year, the National Bureau of Statistics reported that the annual goal was reached and energy intensity had fallen 3.7%[2]. China is a very large country with a dense population, making the implementation of these policies more difficult than other smaller countries. In order to enforce these limitations throughout the country, each province has their own specific energy intensity goals. The National Development and Reform Commission oversees these provinces' goals to make sure that they are all meeting their improvement targets. For example, under the 13th Five-Year Plan, the targets varied from a 17% to 10% improvement in different provinces[2].

Setting the specific goals is only the first half of reducing China's energy intensity. The central and provincial governments collectively spent hundreds billion U.S. dollars to fund projects to "demonstrate energy efficiency equipment, upgrade coal-fired boilers, recover waste heat, implement energy systems, and more"[2]. During the 12th Five-Year Plan, the central government spent around $35 billion and provincial governments spent at least $7 billion on these programs. According to the International Energy Agency, the Chinese government spent an estimate amount of over $211 billion from private funds[2]. The last policy tool, regulations and standards, was wide-spread and highly influential in China's efforts to reduce energy intensity. Within China's central government, different ministries had roles in implementing the numerous regulation standards across various sectors of society. Some of these ministries include but are not limited to: the National Development and Reform Commission, the Ministry of Industry and Information Technology (MIIT), the Ministry of Housing and Urban-Rural Development (MOHURD), and the Ministry of Commerce (MOFCOM).

Examples of Important Regulations / Standards for Reducing Energy Intensity[2]
Regulation / Standard Implemented By Details / Outcomes
Coal-Fired Power Plants: all must use supercritical or ultra-supercritical technology Not Stated Other long-term programs are also implemented to get rid of low-efficiency coal boilers
Top 10,000 Energy-Consuming Enterprises Program: companies within this program need to appoint energy managers, create energy conservation plans, and meet energy consumption targets. Not Stated These 10,000 companies make up around half of all of China's industrial energy command.
Appliance standards and labels: setting energy efficient standards for products and outstanding companies were rewarded by recognition NRDC and MIIT publish articles about recommended products that are energy-efficient These standards and labeling programs existed many years ago and more than 220 energy efficiency standards were implemented in the 12th Five-Year Plan
Building Standards: new residential and public buildings in urban cities must meet design standards that are energy-efficient MOHURD determines these standards; MOHURD developed Green Building Action Plan By September of 2016, 4500 new buildings in China received "green building labels"
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