In a transfer described as a response to a “harmful” warning on the financial system, the European Union has initiated a big crackdown on Chinese state subsidies, significantly specializing in the wind turbine trade.
The European Fee has launched an investigation into Chinese language producers of wind generators used throughout a number of EU member states, together with Spain, Greece, France, Romania, and Bulgaria.
The probe comes amid issues that Chinese language subsidies are unfairly benefiting these producers, permitting them to undercut native producers.
China at present dominates the worldwide wind turbine manufacturing market, accounting for half of the world’s provide. Margrethe Vestager, the EU’s competitors commissioner, criticised China for flooding the market with what she described as “low cost copycat expertise”.
“Once you return to do enterprise in Europe, what follows you’re very low cost merchandise that are produced with what appears to be a manufacturing capability that’s closely subsidised, which makes it unattainable to compete in opposition to it,” mentioned Vestager.
The investigation is a part of a broader effort by the EU to scrutinise Chinese language subsidies, significantly in sectors corresponding to renewable vitality and electrical autos. Beneath the EU’s “Inexperienced Deal Industrial Plan,” European producers have been anticipated to provide round 40 p.c of photo voltaic panels, however the present determine stands at solely 3 p.c, with the bulk being imported from China.
Brussels-based marketing campaign group WindEurope highlighted the numerous worth distinction between Chinese language and European-made wind generators, with Chinese language producers providing costs as much as 50 p.c decrease and extra lenient financing phrases.
The EU’s actions in opposition to Chinese language subsidies prolong past the wind turbine trade. Final 12 months, the European Fee launched an investigation into electrical vehicles imported from China and scrutinised suspicious bids for public tenders for photo voltaic panels in Romania.
The Brussels bloc has additionally launched the Overseas Subsidies Regulation, granting it extra powers to research and block offers which will unfairly profit from state help.