The European Union (EU) finds itself embroiled in accusations of protectionism following its initiation of anti-subsidy investigations into Chinese wind turbine operations across five member countries. Beijing has condemned the EU’s actions, labeling them as a violation of free trade principles and an impediment to normal cooperation between Chinese and European industries.
The EU’s probe, announced on Tuesday, aims to scrutinize whether Chinese wind turbine firms received unfair subsidies or other forms of support from the Chinese government, potentially granting them an advantage in competing for projects in Spain, Greece, France, Romania, and Bulgaria. This marks the EU’s fourth investigation within two months targeting Chinese new energy equipment suppliers, following earlier inquiries related to solar energy projects in Romania and procurement of electric trains in Bulgaria.
Additionally, last October saw the EU launch an anti-subsidy investigation into Chinese electric vehicles.
He Yadong, a spokesperson for China’s Ministry of Commerce, rebuked the EU’s approach, denouncing it as a manifestation of protectionism that undermines the principles of free trade.
China’s Dominance in Renewable Energy
China’s substantial contribution to global renewable energy capacity, accounting for over half of the 510 million kilowatts installed in 2023, underscores its pivotal role in driving the growth of renewable energy generation worldwide. According to a report by the International Renewable Energy Agency (IRENA), China’s innovative prowess, manufacturing capabilities, and extensive engineering projects have played a pivotal role in reducing production costs for wind and solar power by 60% and 80%, respectively, over the past decade.
Pan Huimin, an official at China’s National Energy Administration (NEA), highlighted China’s expansive export footprint in the renewable energy sector, with wind and photovoltaic power products exported to more than 200 countries and regions. The total export value of China’s wind and photovoltaic power products has reached US$33.4 billion and US$245.3 billion, respectively, demonstrating China’s commitment to sharing its green technology and expertise with the world.
EU’s Perspective and Recent Actions
Contrary to China’s stance, the EU published an updated report on state-induced distortions in China’s economy, citing significant distortions across various sectors driven by state intervention and support. The report scrutinizes recent Chinese legislation and evolving industrial policies, identifying distortions in resource allocation, discriminatory access to resources, and state support in key sectors such as metals, chemicals, and new energy vehicles.
A columnist based in Chongqing, identified as Minsu, acknowledged the challenges posed by the EU’s anti-subsidy investigations, attributing them to Western suppression of China’s leading industries. Minsu emphasized the need for Chinese firms to recalibrate their strategies in foreign markets, advocating for a shift away from low-price competition towards enhancing product quality and labor welfare.
EU’s Ongoing Investigations and Chinese Responses
Recent investigations launched by the European Commission into foreign subsidies in a solar power project in Romania have further strained EU-China relations. The probes target Chinese state-owned entities, including Shanghai Electric Group, and Romanian firms involved in the project. In response, China has criticized the EU’s discriminatory actions and urged a return to cooperative, mutually beneficial relations.
Mao Ning, a spokesperson for the Chinese Foreign Ministry, expressed deep concern over the EU’s protectionist tendencies, emphasizing the global unease surrounding such actions. China has signaled its intention to safeguard the legitimate rights and interests of its companies and called for a cessation of discriminatory practices by the EU in favor of fostering collaborative partnerships.