The EU has started an investigation into Chinese wind turbines under the new Foreign Subsidies Regulation.
The announcement comes as Chinese wind turbine manufacturers are pushing hard and winning some orders in Europe, according to WindEurope.
Europe said it wants to strengthen its energy security and maintain its technology leadership in strategic clean tech sectors such as wind energy.
Today Commission Executive Vice-President for Competition Margarethe Vestager (pictured) announced that the EU will use its new Foreign Subsidies Regulation to launch an inquiry into Chinese wind turbine manufacturers.
The EU will initially investigate alleged unfair trade practices in Bulgaria, France, Greece, Romania and Spain.
Vestager claimed that the large excess capacities of Chinese wind turbines “is not only dangerous for our competitiveness, it also jeopardises our economic security”.
She added that the EU must not repeat the mistakes it did in losing its solar manufacturing industry.
Last year the EU adopted its Wind Power Package to strengthen Europe’s wind industry.
Since then the EU has been closely monitoring possible unfair trade practices which benefit foreign manufacturers, she said.
Vestager added: “We’re making full use of the tools that we have.
“But I can’t help feeling that this is also playing whack-a-mole. We need more than a case-by-case approach.
“We need a systematic approach and we need it before it is too late.
“We can’t afford to see what happened on solar panels, happening again in electric vehicles, wind or essential chips.
She said that EU investments in its supply chains, investigations and the new tools we have developed are not meant to constrain China’s success.
“They’re meant to restore fairness in our economic relations.
“Everyone is welcome to be successful, everyone is welcome to trade with Europe, but they have to play by the rules.”
WindEurope CEO Giles Dickson said: “We fully understand the Commission’s rationale.
“Chinese wind turbine manufacturers are offering much lower prices than European manufacturers and incredibly generous financing terms with up to three 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.”
Chinese wind turbines are being offered in Europe at up to 50% lower prices than Europe-made turbines, said WindEurope.
The deferred payments effectively mean that Chinese manufacturers offer their turbines for free until the wind farm operator has three years of revenues.