The European Union has initiated investigations into two groups of companies, including Chinese solar panel manufacturers, amid suspicions of unfair competition from China’s manufacturing sector. The European Commission will assess whether foreign subsidies provided to these companies enabled them to submit overly competitive offers for a contract to build and operate a solar park in Romania partly funded by EU money. Among the companies involved are subsidiaries of China’s LONGi Green Energy Technology Co. and Shanghai Electric Group Co., a state-owned enterprise. The Commission stated that there were indications that both consortia had received foreign subsidies that distorted the EU market.
This latest investigation is part of a series of EU probes into China’s state support for various industries. Previous investigations have focused on China’s electric vehicle makers and allegations by European biodiesel producers that China has been dumping the renewable fuel into the EU market at artificially low prices. The European Commission has also expressed the possibility of imposing tariffs on Chinese biodiesel imports if dumping practices are confirmed. Solar panels play a crucial role in Europe’s transition to a clean energy economy, highlighting the strategic importance of the industry for the region’s energy production, job creation, and security of supply.
European Commissioner Thierry Breton emphasized the importance of solar panels for Europe’s clean energy goals and industrial base. He stated that Europe cannot accept the pricing out of strategically viable industries from the market. The European Union Chamber of Commerce in China also expressed concerns about the impact of unfair competition on European industries. Meanwhile, China has shown determination to continue exporting its key products, including electric vehicles, solar panels, and lithium batteries. Premier Li Qiang announced plans to focus on exporting these products, indicating China’s commitment to promoting its industries on the global stage.
In response to the EU’s actions, China has opened its own anti-dumping investigation into brandy imports from the EU, signaling a potential tit-for-tat escalation in trade disputes between the two regions. These developments highlight the growing tensions in trade relations between the EU and China, particularly in strategic industries such as renewable energy. The outcome of the investigations and any subsequent measures taken by both parties could have significant implications for the solar panel industry and broader economic relations between the EU and China. As both sides continue to assert their interests and concerns, the future of trade and cooperation in key sectors remains uncertain.