The European Commission has initiated an in-depth investigation into Chinese wind turbine manufacturer Goldwind Science & Technology, examining allegations of foreign subsidies distorting the EU’s internal market. This move, utilizing the bloc’s Foreign Subsidies Regulation, has drawn sharp criticism from China, which labels the probe as protectionist.
The European Commission’s investigation into Goldwind centers on the Foreign Subsidies Regulation (FSR), a tool adopted in July 2023. The FSR is designed to address market distortions caused by foreign subsidies. A preliminary review by the Commission indicated that Goldwind may have received foreign subsidies that unfairly benefit its operations within the EU.
This is not the first time the FSR has been employed against Chinese companies. Previous investigations have targeted firms in sectors such as solar energy, railway rolling stock, and security scanning. The EU has signaled its intention to utilize this regulation more broadly against Chinese entities perceived to be benefiting from state support that undermines fair competition.
Goldwind Science & Technology has issued a statement affirming its commitment to compliance and cooperation with the European authorities. The company emphasized its adherence to international rules and local regulations in all markets where it operates, including the EU. Goldwind highlighted its business activities in the EU market are continuing normally and reiterated its dedication to providing high-quality services.
The company also stressed its belief in an open, fair, and non-discriminatory international trade environment, essential for advancing the global energy transition and addressing climate change. Goldwind expressed confidence that constructive communication would clarify the facts.
Meanwhile, China has voiced strong opposition to the EU’s investigation. Beijing has characterized the probe as a protectionist measure, arguing that it sends a negative signal about the EU’s commitment to fair trade practices. Chinese officials have suggested that such actions could hinder international cooperation in the renewable energy sector.
The investigation into Goldwind underscores the growing trade tensions in the green technology sector. As the world pushes for decarbonization, competition in areas like wind energy is intensifying. The EU’s use of the FSR reflects its strategy to safeguard its domestic industries from what it deems unfair foreign competition, while China views these actions as barriers to its companies’ global expansion.