China’s wind sector latest in European cross hairs after EVs, solar panels, trains

Ex officio probe announced by competition chief Margrethe Vestager covers ‘conditions for the development of wind parks’ in six EU nations

‘Our economies cannot absorb’ the impact as China doubles down on supply side support for its economy, Vestager says in speech at Princeton

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“We can’t afford to see what happened on solar panels, happening again on electric vehicles, wind or essential chips,” European Commissioner for Competition Margrethe Vestager has said. Photo: AFP

Published: 9:06pm, 9 Apr 2024Updated: 10:46pm, 9 Apr 2024

The European Union has launched an investigation into subsidies in China’s wind turbine sector, in the latest economic salvo launched at Beijing by Brussels.

The probe, announced by competition chief Margrethe Vestager in the United States on Tuesday, covers “the conditions for the development of wind parks in Spain, Greece, France, Romania and Bulgaria”.

It is the third China-facing investigation under the bloc’s foreign subsidies regulation, a tool adopted last year. The previous two accused Chinese businesses of using state subsidies to undercut the opposition in public procurement contracts.

In this case, the investigation is at a preliminary stage, and has been launched ex officio, meaning on the own volition of executive arm the European Commission, without an official complaint from member states.

The announcement came during a speech at Princeton University in which Vestager, who will leave her role after the European elections in June, pitched a tougher line on China.

“We’re making full use of the tools that we have. But I can’t help feeling that this is also playing whack-a-mole. We need more than a case-by-case approach. We need a systematic approach. And we need it before it is too late. We can’t afford to see what happened on solar panels, happening again on electric vehicles (EVs), wind or essential chips,” the former Danish economy minister said.