China has criticised the European Commission’s anti-subsidy probe into Chinese wind turbine maker Goldwind Science & Technology as “targeted” and “discriminatory”, warning that such measures would undermine Chinese companies’ confidence in the European market and disrupt the bloc’s green transition.
“The European side’s related investigations have generalised the concept of ‘foreign subsidies’ and have many problems, such as insufficient evidence for opening cases and a lack of procedural transparency,” China’s Ministry of Commerce said in a statement on Wednesday.
“This is a typical case of practising protectionism in the name of fair competition,” it added.
The European Commission announced an in-depth investigation into the Chinese wind turbine maker on Monday under its foreign subsidies regulation (FSR), a tool adopted in 2023 that has been frequently used to target Chinese companies in sectors ranging from railway rolling stock to solar energy.
The probe will examine whether financial support from Beijing unlawfully strengthened Goldwind’s position in the European market. Brussels said its preliminary investigations had uncovered “signs” that the company “may have received foreign subsidies that distort competition within the internal market”.
China’s commerce ministry stressed that Chinese firms in the renewable energy sector were competitive due to their strong innovation and technological edge, adding that Brussels’ “abuse of investigations” harmed China-Europe cooperation, Chinese firms’ confidence in the European Union (EU) and the bloc’s green ambitions.
It urged the EU to “immediately correct” its practices, use the foreign subsidies regulation with caution and restraint, and create a fair, just and predictable market environment for cooperation between the two sides. Beijing would “take necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises”, it added.
Goldwind said it would cooperate with the relevant EU authorities throughout the investigation in a statement published on Wednesday.
The company stressed that its strategy was built on technological innovation, good product quality and market-based competitiveness, adding that its operations in the EU were continuing as normal.
“We firmly believe that an open, fair and non-discriminatory international trade and investment environment is essential for addressing climate change and advancing the global energy transition,” it said in the statement.
Brussels’ use of the FSR to investigate Chinese companies has provoked multiple protests from Beijing in recent years. But sources said the tool would be widely used against Chinese operators again this year, as the commission cracks down on what it sees as market distortions caused by China’s economic policies.
More than 60 per cent of Chinese companies in the EU reported being affected by Brussels’ FSR enforcement actions, with companies citing direct disruptions, lost commercial opportunities and operational risks stemming from ongoing or potential investigations, a survey by the China Chamber of Commerce to the EU found last year.
More than half of the 205 companies and organisations surveyed said the FSR had caused indirect harm to their commercial reputation and market perception, according to the report.
The EU is China’s second-largest trading partner after the Association of Southeast Asian Nations (Asean). But Europe recently surpassed the United States to become China’s top source of trade tensions, according to a monthly index released by the China Council for the Promotion of International Trade last week. -- SOUTH CHINA MORNING POST
