The European Commission has opened an in-depth investigation to evaluate the activities of Goldwind Science & Technology Co., Ltd. (‘Goldwind’) concerning the production and sale of wind turbines, as well as related services within the European Union, under the Foreign Subsidies Regulation (‘FSR’). Preliminary concerns have been raised that Goldwind may have received foreign subsidies that could distort competition within the EU internal market.
Goldwind, headquartered in the People’s Republic of China (PRC), primarily operates in wind turbine manufacturing, research and development, sales, and servicing, and is active in the domestic market through its subsidiaries, including Vensys.
The Commission initiated this investigation on its own accord in April 2024, sending requests for information to various companies in the EU wind sector, including Goldwind. Based on initial findings, there are indications that Goldwind may have obtained foreign subsidies that could distort the internal market. Potential foreign subsidies may include grants, preferential tax measures, and advantageous loan financing arrangements.
The Commission has expressed concern that these subsidies might enhance Goldwind’s competitive position in the internal market, potentially undermining competition for the supply of wind turbines and associated services within the EU. The forthcoming in-depth investigation will seek to confirm these preliminary findings, and it is essential to note that the decision to proceed does not imply any predetermined conclusions.
The FSR has been in effect since 13 July 2023, allowing the Commission to address distortions caused by foreign subsidies, thereby ensuring a fair competitive environment for all companies operating in the internal market while maintaining openness to trade and investment.
Under the FSR, the Commission has the authority to initiate investigations independently. If, following a preliminary review, sufficient evidence indicates that a company has received a foreign subsidy that distorts competition in the internal market, the Commission will issue a decision to commence an in-depth investigation. Upon completion of this investigation, the Commission may accept compliance commitments proposed by the company, provided they effectively rectify the distortion, impose corrective measures, or issue a no-objection decision.
