Chinese Wind-Turbine Maker Goldwind Hit by EU Anti-Subsidies Probe

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Chinese wind-turbine manufacturer Goldwind Science & Technology has been hit by an in-depth investigation in the European Union amid concerns that Beijing’s state backing may give it an unfair advantage over European rivals.

The European Commission said on Feb. 2 that its preliminary investigation found indications that Goldwind may have received subsidies from Beijing. Such state aid could come in the form of grants, preferential tax and loan measures, officials said.

“The Commission has preliminary concerns that these foreign subsidies may improve Goldwind’s competitive position in the internal market and may negatively affect competition for the supply of wind turbines and related services in the EU,” the bloc’s executive body said in a statement.

The in-depth investigation will examine whether these concerns are confirmed, it added.

At a regular briefing on Feb. 3, a European Commission spokesperson said the authorities aim to conclude the investigation into Goldwind and adopt a final decision by autumn 2027.

The probe into Goldwind marks the latest application of the bloc’s Foreign Subsidies Regulation (FSR), which gives European regulators significant authority to level the playing field and address distortions caused by subsidized foreign companies operating in the EU’s single market.

In response, the China Chamber of Commerce to the EU said it has taken note of the probe into Goldwind while expressing its opposition to Brussels’ “repeated and disproportionate use of the FSR” against Chinese companies.

“Since the FSR came into force, Chinese companies have suffered direct and indirect losses amounting to billions of euros,” the organization said in a statement on X.

For years, major European wind turbine developers, industry lobby groups, and researchers have called on the Commission to protect the wind sector and ensure fair competition amid an influx of cheap Chinese products into the European market. But the Commission noted that the investigation into the wind manufacturing sector was initiated by itself, rather than at the request of the companies involved.

In April 2024, Margrethe Vestager, then-EU antitrust regulator, announced an inquiry into rapidly expanding Chinese wind turbine suppliers, without naming any specific companies to be scrutinized.

In a speech announcing the decision at the Institute for Advanced Study in Princeton, New Jersey, Vestager highlighted the urgent need to avoid repeating the mistake Brussels had made in the solar panel sector.

“First, attracting foreign investment into its large domestic market, usually requiring joint ventures. Second, acquiring the technology, and not always above board. Third, granting massive subsidies for domestic suppliers, while simultaneously and progressively closing the domestic market to foreign businesses. And fourth, exporting excess capacity to the rest of the world at low prices.”

The consequence, Vestager said, is that fewer than 3 percent of the solar panels currently installed in the EU are produced domestically.

She warned that this strategy has been replicated across all clean technology sectors, semiconductors, and beyond, as China doubles down on supply-side support to address its economic slowdown.

“It is not only dangerous for our competitiveness. It also jeopardises our economic security,” Vestager said. “We have seen how one-sided dependencies can be used against us. And this is why Europe, just as the U.S., is reacting. ”

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