EU competition enforcer Margrethe Vestager said investigators will examine 'the conditions for the development of wind parks in Spain, Greece, France, Romania and Bulgaria'. Photograph: Gilles Sabrié/The New York TimesBrussels has launched a subsidy investigation into Chinese wind turbine companies as it steps up efforts to protect its domestic industry from cheap competition.
The investigation will use the European Commission’s new powers designed to clamp down on market-distorting subsidies from foreign governments as Brussels seeks to defend itself from unfair competition from abroad, including Beijing. In February the commission launched a similar probe into Chinese state-owned company CRRC’s bid to supply trains in Bulgaria, which was half the price of a European competitor. CRRC later withdrew from the process.
“We saw the playbook for how China came to dominate the solar panel industry,” she said. “First, attracting foreign investment into its large domestic market, usually requiring joint ventures. Second, acquiring the technology, and not always above board. Third, granting massive subsidies for domestic suppliers, while simultaneously and progressively closing the domestic market to foreign businesses. And, fourth, exporting excess capacity to the rest of the world at low prices.