EU investigates Chinese suppliers of wind turbine components over unfair competition

The European Commission has launched a new investigation into Chinese suppliers of wind turbines for wind farms in the European Union over suspicions that they are making excessive use of state subsidies. Reuters reported this, citing the text of a speech delivered today by European Competition Commissioner Margrethe Vestager at Princeton University in the United States.

The EC will focus on the conditions for developing wind farms in Spain, Greece, France, Romania and Bulgaria, according to the text of the speech. The names of the companies have not been made public.

The investigation will be conducted under the EU Foreign Subsidies Regulation. Since July 2023, it has allowed the EC to assess whether foreign subsidies enable companies to submit overly advantageous bids in public tenders.

Wind turbines installed in the EU have mostly been manufactured in the European bloc, but Chinese manufacturers are rapidly building their position in the global market, where they held roughly a two-thirds share in 2022. Chinese manufacturers have a share of more than 90 percent of the EU market for solar panels.

According to Vestager, the EU must therefore take a tougher approach. “And we must do so before it is too late. We cannot afford to see what happened with solar panels repeated in electric cars, wind farms or essential chips,” the text of the speech states.

This is the latest in a series of investigations into Chinese clean technology manufacturers. Last week, the Commission began examining whether Chinese bidders had made excessive use of subsidies in their bids for a public tender to build a solar farm in Romania. Since last year, the EC has also been investigating, for the same reason, whether to impose tariffs on imports of Chinese electric vehicles.

The China Chamber of Commerce to the EU has previously said that it is seriously concerned about in-depth investigations of Chinese businesses under EU law. It says the way the regulation was formulated discriminates against Chinese businesses and undermines a level playing field for Chinese businesses operating in the EU.