Spain has announced its support for Chinese wind turbine producer Envision Energy's ambitious plan to build a $1 billion 5GW electrolyser factory in the country. During a visit to China, Spanish Prime Minister Pedro Sanchez signed a Memorandum of Understanding with Envision, signaling the construction of a green hydrogen industrial park. Envision intends to start building the factory in 2026 with a focus on producing PEM and alkaline systems alongside green ammonia production equipment. The decision to establish the factory in Spain was influenced by the nation's resources, market scale, and expertise in the green hydrogen sector. The move by Envision follows its previous investment in Spain, where its electric vehicle battery business AESC initiated a $1.1 billion lithium iron phosphate battery gigafactory. This development aligns with China's Hygreen Energy's announcement of plans to build a €2 billion 5GW electrolyser factory in Spain, showcasing a trend of Chinese companies expanding their presence in the European hydrogen market. However, the increasing dominance of Chinese OEMs in the European market has raised concerns among Western manufacturers, leading EU officials to consider policy interventions to support local industries. The potential threat of losing market share to Chinese competitors has prompted discussions about implementing criteria favoring European manufacturers in subsidy auctions like the European Hydrogen Bank. Hydrogen Europe CEO highlighted the urgent need for policy measures to prevent a scenario where the European electrolyser industry faces a similar fate to the solar PV market, which struggled against Chinese competition and experienced industry crises. The situation in the EU's clean technology manufacturing industries, particularly in solar, has underscored the challenges posed by Chinese products subsidized by the state. The oversupply of low-priced Chinese modules has distorted competition, affecting European manufacturers and leading to bankruptcy, production halts, and factory closures. The industry's plea for support echoes the need for balanced market conditions and fair competition to sustain European clean technology sectors.