Action Taken by EU Against Wind Projects in China

The European Union has taken action against Chinese wind turbine projects amid concerns about unfair advantages due to state subsidies from Beijing. The European Commission has launched an inquiry into Chinese companies producing wind turbines for use in several European countries, including Bulgaria, Greece, Romania, Spain, and France.

The investigation aims to determine whether the state subsidies provided to Chinese suppliers have given them an unfair edge over domestic manufacturers, allowing them to undercut competitors and offer turbines at lower prices. China currently dominates the global wind turbine market, supplying half of the world’s turbines.

This move by the EU reflects a growing scrutiny of Chinese subsidies, with concerns that these subsidies are distorting fair competition for infrastructure projects in Europe. Margrethe Vestager, the EU’s competition commissioner, criticized China for flooding the market with low-cost, knock-off technology, making it difficult for European companies to compete.

Vestager pointed out that China had previously applied similar tactics in the solar panel industry, using massive subsidies to local suppliers and flooding the European market with cheaper products. This has led to a situation where only 3% of solar panels in Europe are produced by European companies, with the majority coming from China, despite initial plans for a more balanced distribution.

The competition commissioner emphasized the need to address these imbalances, as they not only threaten competitiveness but also pose risks to economic security. She noted that such one-sided dependencies could be exploited against European economies, highlighting the importance of taking action to protect against unfair practices.

According to WindEurope, a campaign group based in Brussels, Chinese wind turbines are being sold in Europe at prices up to 50% lower than European-made turbines. This significant price differential further underscores the concerns about unfair competition in the wind turbine market.

Overall, the EU’s inquiry into Chinese wind turbine projects reflects a broader effort to ensure a level playing field for European manufacturers and protect against unfair trade practices. By addressing concerns about state subsidies and promoting fair competition, the EU aims to safeguard its economic interests and maintain a secure and competitive marketplace.