The European Commission announced on Tuesday (February 3) that it has initiated a thorough investigation into the Chinese wind turbine manufacturing giant, Goldwind Science & Technology. The reason behind this action is the suspicion that the company might be benefiting from subsidies provided by the Chinese government, giving it an unfair competitive advantage in the European market and distorting competition within the EU.
Goldwind Science & Technology, headquartered in China, conducts business in the EU market through its subsidiary Vensys and other affiliated companies.
According to a statement released by the European Commission on Tuesday, the in-depth investigation will be carried out under the Foreign Subsidies Regulation (FSR), assessing Goldwind Science & Technology’s activities in the EU related to the production, sales, and services of wind turbines.
The Commission initiated an investigation in April 2024, requesting information from several companies active in the EU wind energy industry, including Goldwind Science & Technology. Based on the preliminary findings of the investigation, the European Commission found indications suggesting that Goldwind Science & Technology may have received subsidies distorting the EU market.
The possible foreign subsidies highlighted by the EU include grants, preferential tax measures, and subsidized financing in the form of loans. The European Commission preliminarily believes that these foreign subsidies may enhance Goldwind Science & Technology’s competitiveness in the EU internal market and could adversely affect the supply competition of wind turbines and related services in the EU.
During the in-depth investigation, the European Commission will evaluate the results of the preliminary inquiry.
The EU’s Foreign Subsidies Regulation came into effect on July 13, 2023. This regulation empowers the European Commission to address market distortions caused by foreign subsidies, allowing the EU to ensure a fair competitive environment for all companies operating in the EU market while maintaining trade and investment openness.
Under the Foreign Subsidies Regulation, the European Commission has the authority to initiate investigations proactively. If, based on the preliminary examination results, the Commission finds sufficient evidence indicating that a company has benefited from foreign subsidies distorting the EU market, it will decide to launch a thorough investigation.
The China Chamber of Commerce to the EU (CCCEU), representing Chinese interests in the EU, expressed concerns in a statement regarding the European Commission’s decision to launch an in-depth investigation into Goldwind Science & Technology under the Foreign Subsidies Regulation. The CCCEU strongly opposes the EU’s repeated and excessive use of the Foreign Subsidies Regulation to scrutinize Chinese investment enterprises.
Reuters reported that amid a surge of inexpensive Chinese products entering the EU market, major European wind turbine manufacturers, including Vestas, Siemens Energy, and Nordex, have long been urging the European Commission to ensure fair competition.