China plans to increase its capacity of on-line wind power to 1200 MW by 2005. Its existing 344 MW comes from 24 wind farms located mainly in north China and along the east coast. Although no new wind power projects were approved last year, the State Development Planning Commission's Chen Heping is confident. "The target will absolutely be met, probably surpassed," he says. China's 17% value added tax on wind power is to be cut by half in pursuit of the goal, at an estimated cost to the government of ´6 billion in annual tax revenue.