EU probes Chinese language-owned photo voltaic panel companies over subsidies
by AFP Workers Writers
Brussels, Belgium (AFP) April 3, 2024
The European Union on Wednesday introduced investigations concentrating on two Chinese language-owned photo voltaic panel producers suspected of receiving subsidies as commerce tensions warmth up between Brussels and Beijing.
Brussels has previously yr taken stronger motion to defend European business in opposition to rising threats from China and the US — however the EU additionally faces a dilemma.
The 27-nation bloc desires to construct up its renewable power because it races to succeed in web zero greenhouse fuel emissions by 2050, however on the similar time transfer away from excessively counting on cheaper Chinese language wind and photo voltaic expertise.
Chinese language state subsidies are already within the EU’s crosshairs. In September final yr, Brussels began a probe into Chinese language electrical automotive subsidies that would result in punitive tariffs on automobiles it believes are unfairly offered at a cheaper price.
Beijing on the time warned it could hurt commerce relations, and raised fears the EU was risking a commerce conflict.
Wednesday’s probes had been launched beneath new guidelines that got here into power in July final yr and search to forestall international subsidies from undermining truthful competitors within the EU.
Below investigation are two consortiums, certainly one of which incorporates the Enevo group in Romania and a German subsidiary of Chinese language mum or dad firm Longi Inexperienced Power Know-how.
Longi is the world’s largest photo voltaic panel producer.
The second consortium is made up of two subsidiaries each absolutely owned and managed by Chinese language state-owned agency, Shanghai Electrical group.
“The (European) Fee will assess whether or not the financial operators involved did profit from an unfair benefit to win public contracts within the EU,” the bloc’s highly effective antitrust regulator stated.
The China Chamber of Commerce to the EU accused the bloc of abusing its new powers.
“We categorical our severe dissatisfaction with the abuse of the brand new instrument by the related EU authorities and using the International Subsidies Regulation as a brand new instrument of financial coercion,” it stated in an announcement.
– ‘Protect Europe’s financial safety’ –
Below the EU’s new guidelines, companies should inform the fee when their public procurement tenders within the EU are price greater than 250 million euros ($270 million) and when the corporate has been granted a minimum of 4 million euros in international monetary contributions within the three earlier years.
“The fee thought-about it justified to open an in-depth investigation for 2 bidders, since there are ample indications that each have been granted international subsidies that distort the interior market,” stated an announcement.
The 2 consortiums had utilized to design, assemble and function a photovoltaic park in Romania with an put in capability of 110 megawatts, partly financed by European funds.
“The 2 new in-depth investigations… intention to protect Europe’s financial safety and competitiveness by guaranteeing that corporations in our single market are really aggressive and play truthful,” the EU’s inside market commissioner Thierry Breton stated.
Europe closely depends on international photo voltaic panels. Greater than 97 % of the panels in Europe are imported, primarily from China, the EU’s monetary companies commissioner, Mairead McGuinness, stated in February.
She pointed to a worldwide oversupply and a surge of imports within the EU since 2023.
“Photo voltaic panel costs have plummeted by over 40 %. These falling costs are a chance for residents and photo voltaic panel installers because it helps inside demand, and it’s clearly a problem to EU photo voltaic panel producers,” she stated.
– Previous battles –
It isn’t the primary time the EU has focused China beneath its International Subsidies Regulation.
In February, the fee started a probe right into a subsidiary of Chinese language rail big CRRC. That investigation was closed after the CRRC subsidiary withdrew this month from a young in Bulgaria to provide electrical trains.
Battles with China over photo voltaic panels are usually not new for Brussels both.
In 2013, the EU imposed anti-dumping duties after European producers stated they had been being compelled out of enterprise by underpriced Chinese language panel imports.
These restrictions had been scrapped 5 years later.
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