China's State Economic and Trade Commission (SETC) has strengthened its support for localising the production of wind power equipment. Using money from a treasury bond issue, the SETC has sponsored four 80 MW wind projects. As a condition for its support, the government set fixed "production localisation" rates for wind power equipment ordered by the project developers. For a typical wind power project, 70% of total investment goes to equipment procurement. SETC regards localising production as the key to cost reduction -- a crucial element for the future of the country's wind power development.