‘Coercion and discrimination’ – Chinese commerce body attacks EU probe
‘Coercion and discrimination’ - Chinese commerce body attacks EU probe | Windpower Monthly
Margrethe Vestager, the European Commissioner for Competition, announced the probe in a speech yesterday (10 April) in which she said that the EU would investigate how "certain wind manufacturers and other companies...may benefit from foreign subsidies which grant them an unfair advantage over their competitors".
Vestager also voiced fears that China could come to dominate the European wind power supply chain, referencing its supremacy in the solar power supply chain, and called for the introduction of “trustworthiness criteria” in the wind industry’s supply chain.
'Profound dissatisfaction'
Reacting to Vestager's speech, the Chinese Chamber of Commerce to the EU (CCCEU) expressed its “profound dissatisfaction” with the probe.
“We reiterate that the EU side's continuous deployment of the FSR [Foreign Subsidies Regulation] against Chinese enterprises forges an act of economic coercion. This action sends a detrimental signal to the world, suggesting discrimination against Chinese enterprises and endorsing protectionism,” the CCCEU said.
It added that the probe also threatened European efforts to tackle the climate crisis at the global level while “endorsing protectionism”.
“This not only contravenes the principles of fair market competition but also undermines the EU's commitment to enhancing international cooperation in global emission reduction and low-carbon coordination,” the CCCEU said.
Chinese wind turbine manufacturer Mingyang said it was monitoring the situation after Vestager's speech.
A spokesperson for the firm, which is planning a manufacturing plant in Scotland, told Windpower Monthly:
“Mingyang Smart Energy Group has taken note of the EU's recently announced decision to investigate Chinese wind turbine suppliers. Mingyang will continue to closely monitor this development and...will continue to provide affordable and efficient clean energy technology worldwide."
'Unfair subsidies'
But Europe’s wind industry trade body, WindEurope, welcomed the investigation and said it “fully understands” why the probe was launched.
“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,” said Giles Dickson, CEO of WindEurope.
Siemens Energy, parent company of turbine manufacturer Siemens Gamesa, said it had previously called for action about the potential for unfair competition on wind energy in Europe.
A spokesperson said: “We do not comment on the investigation itself, that is a matter up to the authorities. What we have repeatedly emphasised, however, is that we need a level playing field, i.e. a fair market environment for all market participants.”
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