More competition

The move would help the development of the country's wind power industry and establish an open market of rational competition, Chine Business News said in a report, citing a statement sent to local governments by the National Development and Reform Commission, the country's top economic planning agency.

The move will result in fiercer competition between Chinese and foreign companies, but it will also boost cooperation between them, said an analyst who declined to be named.

"This is not a major issue for Vestas," said Andrew Hilton, spokesman for the Danish company in China. "Our global strategy is to produce where we sell, so this development will not have an impact on our production of wind turbines in China."

"Our goal has always been to localize our production as much as possible. The turbines made in our Chinese factories currently consist of more than 80 per cent local content and our goal is to increase this."