EU launches inquiry into China’s subsidies for wind turbines

THE EU has launched an investigation into wind turbines sold by Chinese suppliers amid fears that state subsidies from Beijing are hurting local producers on the Continent.

An investigation has been launched by the European Commission into Chinese manufacturers of wind turbines used in Spain, Greece, France, Romania and Bulgaria. This will examine whether Chinese suppliers have unfairly benefited from state subsidies, allowing them to offer cheaper turbines and cut out the competition.

China is the world’s largest manufacturer of wind turbines and accounts for half of global supply.

The investigation further ramps up EU scrutiny of Chinese subsidies amid fears generous payouts are distorting Europe’s level playing field for bidding on infrastructure contracts. Brussels’ competition tsar Margrethe Vestager, who launched the investigation, criticised China for flooding the market with cheap copycat technology.

She said: “When you go back to do business in Europe what follows you are very cheap products that are produced with what seems to be a production capacity that is heavily subsidised, which makes it impossible to compete.”

Ms Vestager said China has used the tactic in the development of solar panels by granting “massive subsidies” to domestic suppliers and then flooding Europe with cheaper technology. Under the EU’S “Green Deal Industrial Plan”, around 40pc of solar panels were meant to be made by European manufacturers but today the figure is only 3pc, with the rest coming from China.

Ms Vestager said: “Our economies cannot absorb this. It is not only dangerous for our competitiveness, it also jeopardises our economic security. We have seen how one-sided dependencies can be used against us. And this is why Europe, just as the US, is reacting.”

Brussels-based campaign group Windeurope said Chinese wind turbines were being sold in Europe for up to 50pc cheaper than Europeanmade turbines.

The wind turbine inquiry is the latest action from the EU over generous Chinese subsidies to domestic players.

Last October the European Commission launched an investigation into electric cars imported from China into Europe and whether manufacturers benefited from unfair subsidies.

It is also investigating “suspicious” Chinese bids for public tenders for solar panels in Romania funded by Chinese state money.