The European Union has initiated investigations into two groups of companies, including Chinese solar panel manufacturers, in response to suspicions of unfair competition stemming from foreign subsidies. Specifically, the European Commission is assessing whether these consortia were able to submit unusually competitive offers for a contract to build and operate a solar park in Romania, partially funded by EU money, due to foreign subsidies. The groups under investigation include subsidiaries of China’s LONGi Green Energy Technology Co. and Shanghai Electric Group Co., a state-owned enterprise. The Commission stated that there are indications that foreign subsidies received by these consortia have distorted the internal EU market.
This latest probe adds to the ongoing EU investigation into China’s state support for its electric vehicle manufacturers, as well as allegations by European biodiesel producers of China engaging in dumping practices by exporting renewable fuel to the EU at artificially low prices. The European Commission has raised the possibility of imposing tariffs on Chinese biodiesel imports if dumping is confirmed. Solar panels play a significant role in Europe’s transition towards a clean energy economy, making them a strategically important industry for the region according to Commissioner Thierry Breton, who emphasized the importance of solar panels for clean energy production, job creation, and security of supply.
Jens Eskelund, president of the European Union Chamber of Commerce in China, expressed concerns about European industries being priced out of the market, emphasizing the need to protect strategically viable industries that form the European industrial base. Meanwhile, China remains steadfast in its commitment to exporting its key products, including electric vehicles, solar panels, and lithium batteries. Premier Li Qiang recently announced China’s focus on exporting more of these products, reinforcing the country’s dedication to international trade despite facing investigations and challenges related to dumping practices. Additionally, China has initiated its own anti-dumping investigation into brandy imports from the EU, indicating its willingness to address perceived market imbalances in various industries.
The EU’s actions against Chinese solar panel manufacturers are part of a broader push to ensure fair competition within the EU market and protect domestic industries from distortion caused by foreign subsidies. The investigations into the alleged receipt of foreign subsidies by the two consortia highlight the EU’s commitment to enforcing trade regulations and leveling the playing field for all companies involved in the market. By addressing concerns related to unfair competition and dumping practices, the EU aims to safeguard its own industries and promote a more balanced and sustainable economic environment within the region. Overall, these investigations are a reflection of the EU’s efforts to uphold its trade regulations and principles of fair competition in the face of global challenges and trade disputes.
