Chinese industrial overcapacity remains a major concern for EU competitiveness. When we are not talking about electric cars (see EUROPE 13784/4) or solar panels, we are talking about an influx of Chinese turbine exports.
On Tuesday 3 February, the European Commission opened an in-depth anti-subsidy investigation into the activities of turbine giant Goldwind Science & Technology, concerning the production and sale of wind turbines and the provision of related services within the EU.
A preliminary investigation, opened in April 2024, raised concerns that Goldwind may have benefited from foreign subsidies that could distort the EU’s internal market. Headquartered in China, the company has a presence in the EU through its subsidiary Vensys (Germany, Poland, France, Ireland and Spain).
Potential foreign subsidies include “grants, preferential tax measures and preferential financing in the form of loans”, the Commission points out.
Under the Foreign Subsidies Regulation (FSR), which came into force in 2023, three alternatives are possible at the end of the investigation. The Commission may accept the commitments proposed by the company if they remedy the distortion, impose corrective measures or issue a non-objection decision.
The Commission intends to adopt its final decision by autumn 2027, “but this also depends on the cooperation we get from the company, which is beyond our control”, according to a spokesperson.
In reaction to this announcement, the Chinese Chamber of Commerce to the EU denounced the “repeated and disproportionate use” of FSR by the EU targeting Chinese-owned companies. (Original version in French by Pauline Denys)