Renewables: Shadow of unfair Chinese competition in Europe’s wind sector; EU launches probe

Brussels – The shadow of new unfair competition from China in the renewable energy sector, this time in relation to wind power. The European Commission has decided to launch an in-depth investigation into the activities of Goldwind, a company active in the production and sale of wind turbines and wind energy technologies. Based in the People’s Republic of China, “the Commission has preliminary concerns that Goldwind may have been granted foreign subsidies that could distort the EU internal market,” according to a statement that announces the launch of the investigation.

The European Union has already had to respond to unfair competition from the Asian giant in the renewable energy sector, with the Commission forced to introduce anti-dumping tariffs on “Made in China” solar panels. That was in 2013, and the anti-China tariff policy has been dragging on for years. Added to this was the tug-of-war over electric cars, and EU tariffs on Chinese-made eco-friendly four-wheelers. Now, the problem of unfair Chinese competition in the renewable energy sector is expanding.

In reality, the European Commission began “looking into” Goldwind in April 2024, when it launched on its own initiative a preliminary investigation into the company’s financing. Today (3 February), on the basis of that preliminary probe, the twelve‑star competition authority found “indications” that Goldwind “may” have benefited from foreign subsidies that violate competition rules. This involves possible Chinese state aid, with the Beijing government actively supporting the company financially.

 Possible foreign incentives include grants, preferential tax measures, and preferential financing, such as loans. All types of aid aimed at making Goldwind stronger and more competitive in the domestic market, and negatively affecting competition for the supply of wind turbines and related services in the EU. The EU-China clash, therefore, opens a new chapter.