According to the Russian Sputnik news agency, citing AFP, the executive vice president of the European Commission and competition commissioner Vestager, speaking at Princeton University in the United States, said that the EU will conduct a countervailing investigation of Chinese wind turbine suppliers, but did not mention the names of the companies involved. Vestager also said that the European Commission will investigate the conditions for the development of wind farms in Spain, Greece, France, Romania and Bulgaria.
It is understood that wind turbines and heat pumps are the most prominent areas of manufacturing capacity of EU enterprises. Currently, EU-made wind turbines account for 85% of the EU market and heat pump products account for 60% of the EU market, but rare earth minerals, the main raw materials for wind turbines, rely heavily on imports from China. Although most of the wind turbines installed in the EU are produced locally, as the adjustment of the industrial and energy structure accelerates, Chinese wind turbine manufacturers are gradually beginning to expand their dominant position in global supply. As of 2022, Chinese wind turbine manufacturers have quickly captured about two-thirds of the global market.
China has the largest and most fragmented wind power market, with more than 12 domestic manufacturers, and fierce price competition has eroded profit margins, with many companies expanding overseas. After entering the overseas market, Chinese wind turbine manufacturers have gained a firm foothold through just a few years of continuous cultivation, mainly thanks to the low price advantage and excellent performance of Chinese wind turbines. The data shows that the price of Chinese-made turbines delivered abroad is about a fifth lower than that of their American and European counterparts.
Due to the large share of Chinese wind turbines in the offshore market, European companies decided to launch a countervailing investigation against Chinese companies and expand the scope of the investigation to include electric vehicles, believing that Chinese manufacturers are monopolizing the region, putting them in an unfair position in the market competition. It should be pointed out that the EU's countervailing investigation of Chinese wind turbine manufacturers has not played a significant role in maintaining the development space of local wind power enterprises. Even if Chinese wind power companies are sanctioned by the EU, there is still a huge gap in cost compared with European and American companies, and they still have a price advantage.
In addition, with the huge decline in the revenue of European wind power projects, the EU's countervailing investigations against Chinese companies have had limited effect, which will not only fail to revive the development of the local wind power industry, but will further exacerbate the financial costs of related industries, and ultimately only harm the interests of European companies. It is worth mentioning that the investigation into Chinese wind turbine suppliers is the third in the EU to launch an investigation against China under the Foreign Subsidies Regulation passed last year. This follows similar investigations into China's subsidies for solar panels, electric vehicles and trains.
Before the EU announced a countervailing investigation of Chinese wind turbine suppliers, China's Minister of Commerce Wang Wentao held a discussion with French brandy enterprises and industry associations in Paris, France, to exchange views on the cooperation of the French brandy industry with China.
Wang Wentao pointed out that China's anti-dumping investigation on EU brandy was initiated at the request of the domestic industry, and does not target any specific EU member state, and does not pre-set the results of the investigation, and China will carry out the investigation in an open and transparent manner in accordance with Chinese laws and WTO rules, so as to fully protect the rights of stakeholders. The heads of the five French companies participating in the meeting expressed their willingness to actively cooperate with the Chinese investigation process and continue to deepen the Chinese market.
On economic and trade issues, China has always advocated the rational and prudent use of trade remedy measures and resolutely opposes protectionist acts of abusing trade remedy measures. However, the European Commission's countervailing investigation into China's wind power industry clearly violates the principle of fair market competition and undermines the right of Chinese enterprises to develop properly. It is hoped that the EU will proceed from the overall situation and create a fair, non-discriminatory and predictable market environment for the development of Chinese enterprises.