“Before it is too late”
EU targets Chinese wind turbine manufacturers
April 9, 2024, 6:02 p.m
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China is repeatedly suspected of massively helping economic sectors with money and thus distorting competition. After the European solar industry was largely brought to its knees, the EU wants to take early countermeasures in the case of wind turbine manufacturers.
Brussels is investigating possible state subsidies for Chinese suppliers of wind farms in Europe. EU Competition Commissioner Margrethe Vestager said in a speech at US Princeton University that the EU would examine the conditions for the development of wind farms in Spain, Greece, France, Romania and Bulgaria. The Dane did not name the companies affected. The investigations are not aimed at limiting China’s economic success, Vestager said. “They are intended to restore fairness to our economic relations.”
Just last week, the EU competition watchdog launched investigations to examine whether Chinese bidders profited from state aid in an anti-competitive manner in a public tender for a solar park in Romania.
Meanwhile, the EU Commission announced that it had indications that certain wind turbine manufacturers had benefited from foreign subsidies that gave them an unfair advantage over competitors. There is an accusation of distortion of competition. Vestager said it takes more than looking at each case individually. “We need a systematic approach. And we have to do it before it’s too late.” What happened to the solar industry should not be allowed to happen again.
Backing for Vestager
The background is that fewer and fewer solar modules are being manufactured in Europe, also because China and the USA are specifically promoting the establishment of such factories. It is feared that China could use its subsidies to force European companies out of the market in other important economic areas such as electromobility, microchip production or wind energy. This would also increase Europe’s dependence on imports from China.
European states cannot simply help their companies with tax money. There are strict rules for state aid in the EU. This is intended to prevent a relatively rich and large country like Germany from giving its companies a disproportionate advantage over competitors from smaller countries such as Belgium or the Czech Republic.
The liberal politician Vestager is receiving support from a rather unusual camp: the industrial and energy policy spokeswoman for the German Left in the European Parliament, Cornelia Ernst, praised the Commission’s actions. “It is particularly interesting that Vestager is calling for all available trade policy instruments to be used to protect European industry.” Vestager is considered an unconditional supporter of free trade, said Ernst. Therefore, in her current statements she sees that the tone in Brussels is changing.