EU Launches Inquiry into Chinese Wind Turbine Suppliers

Under the new inquiry, the EU will focus on investigating unfair trade practices in five key markets: Bulgaria, France, Greece, Romania, and Spain.

April 11, 2024. By Abha Rustagi

The European Commission has taken decisive action to investigate Chinese suppliers of wind turbines under the new Foreign Subsidies Regulation, citing concerns over unfair trade practices and market distortion. The inquiry comes amidst increasing competition from Chinese manufacturers in Europe's wind energy sector, fueled by cheap turbines and generous financing terms.

Chinese wind turbine manufacturers have been aggressively pursuing orders in Europe, leveraging their competitive pricing and attractive financing options, which European officials argue undermine the integrity of the market and hinder fair competition. Europe, keen to maintain its leadership in strategic clean tech sectors like wind energy and bolster its energy security, has been vigilant in monitoring potential trade imbalances.

Commission Executive Vice-President for Competition, Margarethe Vestager, highlighted the significance of the inquiry, stating that the large excess capacities of subsidized Chinese wind turbines pose a threat not only to Europe's competitiveness but also to its economic security. Vestager emphasized the need to avoid repeating past mistakes, alluding to the loss of Europe's solar manufacturing industry.

Under the new inquiry, the EU will focus on investigating unfair trade practices in five key markets: Bulgaria, France, Greece, Romania, and Spain. The aim is to defend the integrity of the European market, ensure fair competition, and establish a level playing field between European and Chinese turbine manufacturers.

“We fully understand the Commission’s rationale,” said WindEurope CEO Giles Dickson. “Chinese wind turbine manufacturers are offering much lower prices than European manufacturers and incredibly generous financing terms with up to 3 years deferred payment. You can’t do that without unfair public subsidy. What’s more the European manufacturers aren’t allowed to offer deferred payment like that under OECD rules.”

The inquiry reflects Europe's commitment to upholding fair trade principles and safeguarding its economic interests in the face of growing competition from overseas manufacturers. As the investigation unfolds, the EU aims to address the challenges posed by subsidized Chinese wind turbines and ensure a fair and competitive environment for all stakeholders in the European wind energy market.

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Europe's wind energy sector

Margarethe Vestager

OECD rules

Giles Dickson

Wind turbine manufacturers