Li_DanLi_Dan ・ Apr. 12, 2024
China Expresses Firm Opposition to EU Subsidy Probe Against Clean Energy Industry
The Chinese commerce official lodged stern representations against EU's recent investigation into wind turbine subsidy and its report about severe distortions in China's economy.

TMTPost -- Beijing has issued serious warnings about the European Union’s recent attempts including the investigation against China’s clean energy industry.

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In meeting with Martin Lukas, director general of the trade defence department of the European Commission, in Brussels on Wednesday, the head of the Trade Remedies Bureau of the Ministry of Commerce of China (MOFCOM) has lodged stern representations against EU’s recent investigation into wind turbine subsidy and its report about severe distortions in China's economy, according to the ministry’s statement that day.

The European Commission is launching a new inquiry into Chinese suppliers of wind turbines as it is concerned certain manufacturers may benefit from unfair subsidies, Margrethe Vestager, the executive vice-president of the EU executive, announced on Tuesday. “We are investigating the conditions for the development of wind parks in Spain, in Greece, in France, in Romania and in Bulgaria.” Vestagerthe said during a lecture at Princeton University in the U.S. The EU’s anti-trust commissioner claimed China had attracted foreign investment, acquired technology and granted “massive subsidies” to domestic suppliers before exporting cheaply, resulting in less than 3% of solar panels installed in Europe are produced locally. “We can’t afford to see what happened on solar panels, happening again on electric vehicles, wind or essential chips,” she said.

The EU’s probe into Chinese wind turbine suppliers in five EU member states under the Foreign Subsidies Regulation (FSR) on April 9 is the fourth investigation that EU initiated under FSR against Chinese companies in nearly two months, official at MOFCOM pointed out in the statement. China believes Chinese new energy-related firms are obvious targets of all the recent inquires launched by EU so far, the official said. The official warned that EU’s move will not just dampen confidence of Chinese enterprises in investments and trade cooperation in EU, interfere with mutual beneficial industrial cooperation between China and Europe, and impede global efforts to address climate change and the process of green transformation.

The Chinese commerce official accused EU of wanton distorting the definition of subsidies, and conducting inquires without open or transparent procedural standards, which is a protectionist act that harms the level playing field in the name of fair competition. China expresses strong dissatisfaction with the EU move and firmly opposes that, urging EU to cease the wrong doing and make correction immediately, the official said.

China also made is stern opposition to EU’s updated report on “significant distortions” in China’s economy, according to the statement. The Chinese official raised great concern over the EU’s report and disagreed with it strongly as it once again distorted the interpretation of China's policies, market environment and economic system, creating excuses for its subsequent discriminatory anti-dumping practices. Noting the concept and standard of "serious distortion" of the economy does not exist in the rules of the World Trade Organization (WTO), the official cautioned the so-called standard of  “significant distortions” that the EU fabricated unilaterally and adopted to evaluate China's market economy will bring negative impact and uncertainties to China-EU economic and trade relations, since it is completely inconsistent with the facts. China will closely monior EU's subsequent developments and reserves the right to take all necessary measures, according to the statement.

China is highly concerned over the EU’s discriminatory actions against Chinese companies and even the entire industries, Chinese Foreign Ministry spokesperson Mao Ning responded to EU’s probe into wind turbine suppliers and solar PV, PV, electric vehicles and other sectors in China on Wednesday. “We hope the EU will not keep stressing the importance of fighting climate change on the one hand and yet damage the global efforts to deal with the issue on the other,” Mao said. “Protectionism does not solve one’s own problems. Protectionism only protects backwardness. It costs the future and results in lose-lose. “ The spokesperson said China urges the EU to observe WTO rules and market principles and vows to firmly protect the lawful rights and interests of Chinese companies. 

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