China has expressed strong disapproval of the European Commission's recent investigation into the wind turbine manufacturer Goldwind Science & Technology, labeling it as both "targeted" and "discriminatory." This inquiry, which China argues could erode the confidence of its companies within the European market and hinder the bloc's transition toward greener technologies, has raised significant concerns.
In a statement issued on Wednesday, China’s Ministry of Commerce articulated its views, criticizing the European investigations for what it perceives as an overly broad interpretation of "foreign subsidies." The ministry pointed out numerous flaws in the process, including a perceived lack of adequate evidence to justify the initiation of such cases and insufficient transparency in the procedures being followed.
According to the ministry, this situation exemplifies a protectionist approach disguised as a fair competition initiative: "This is a typical case of practising protectionism in the name of fair competition," they stated.
On Monday, the European Commission announced that it would undertake a detailed examination of Goldwind under its foreign subsidies regulation (FSR), a framework established in 2023 that has often been employed to scrutinize Chinese enterprises across various sectors—from railway manufacturing to solar energy production.
The essence of the investigation is to determine whether financial backing from the Chinese government has unlawfully bolstered Goldwind’s competitive position in Europe. Preliminary inquiries by Brussels have suggested there are indications that the company might have benefitted from foreign subsidies, which could distort competition within the European market.
The Chinese Ministry emphasized that firms operating in the renewable energy sector in China owe their competitiveness to robust innovation and technological advancements. They further stated that the European Union's misuse of these investigative processes could negatively impact cooperation between China and Europe, diminish the confidence of Chinese businesses in the EU, and undermine the region's green objectives.
China urged the EU to "immediately correct" its approach, advocating for the cautious and restrained application of the foreign subsidies regulation. It called for the establishment of a fair and predictable market environment conducive to collaboration between the two parties. Additionally, the ministry pledged that Beijing would take necessary actions to safeguard the legitimate rights and interests of Chinese enterprises.
