EU opens probe into Chinese wind giant Goldwind under foreign subsidies rules

The EU has launched a formal investigation into Chinese wind-turbine maker Goldwind, looking into whether state support from Beijing may have unfairly boosted the company’s footprint in Europe.

The move marks the latest use of the EU’s foreign subsidies regulation, which came into force in July 2023, after having previously been applied to Chinese solar, railroad and security firms.

“To make sure all companies compete on equal terms in the European Single Market, the EC has opened an in-depth investigation into the activities of Goldwind in the European wind sector under the Foreign Subsidies Regulation (FSR),” said EU competitiveness commissioner Teresa Ribera on social media on Tuesday (3 February). 

This is the first high-profile case in the wind sector.

The law is designed to prevent companies from benefitting from foreign government aid that could distort competition in the internal market. 

Commission officials said on Tuesday that preliminary checks had found “indications” that Goldwind might have received grants, preferential loans, or tax breaks from the Chinese state that could “distort the single market.”

The in-depth probe will now examine whether those subsidies gave Goldwind an unfair edge over European rivals and, if confirmed, what measures should be taken.

The inquiry into Chinese wind turbine suppliers was launched in 2024 by then-competition chief Margrethe Vestager, who warned that Europe’s wind sector risked following the path of the solar industry which had benefitted from “massive subsidies.”  

A request for information about possible unfair competition went out to EU turbine makers, paving the way for Tuesday’s decision to open a formal probe into Goldwind. 

The commission will now investigate whether preliminary findings hold up, and decide whether the company needs to offer remedies, face corrective measures, or, if no transgression is found, is allowed to carry on as usual.

“The opening of an in-depth investigation does not prejudge the outcome of the investigation,” the commission stressed.

China’s commerce ministry has slammed previous investigations as “unreasonable actions against Chinese companies,” while Chinese business groups have criticised EU’s  anti-subsidy probes as “discriminatory” and “excessive.”