The European Commission has opened an in-depth investigation to assess, under the Foreign Subsidies Regulation ('FSR'), the activities of Goldwind Science & Technology Co., Ltd. ('Goldwind') in the production and sale of wind turbines and the provision of related services within the EU. The Commission has preliminary concerns that Goldwind may have been granted foreign subsidies that could distort the EU internal market.
Goldwind is headquartered in the People's Republic of China ('PRC') and is mainly active in the sector of wind turbine manufacturing, R&D, sales, and servicing. Goldwind is active in the internal market, including through Vensys and its other subsidiaries.
The Commission's preliminary concerns
The Commission started this investigation on its own initiative (ex officio) in April 2024 by sending requests for information to several companies active in the EU wind sector, including to Goldwind. Based on this preliminary investigation, the Commission finds indications that Goldwind may have been granted foreign subsidies that distort the internal market.
The possible foreign subsidies include grants, preferential tax measures, and preferential financing in the form of loans. The Commission has preliminary concerns that these foreign subsidies may improve Goldwind's competitive position in the internal market and may negatively affect competition for the supply of wind turbines and related services in the EU.
In its in-depth investigation, the Commission will assess whether the preliminary findings are confirmed. The opening of an in-depth investigation does not prejudge the outcome of the investigation.
The procedure under the Foreign Subsidies Regulation
The FSR started to apply on 13 July 2023. The Regulation enables the Commission to address distortions caused by foreign subsidies and thereby allows the EU to ensure a level playing field for all companies operating in the internal market while remaining open to trade and investment.
According to the FSR, the Commission has the power to initiate investigations on its own initiative.
Where the Commission, based on the preliminary review, has sufficient indications that a company received a foreign subsidy distorting the internal market, it adopts a decision to open an in-depth investigation. At the end of its in-depth investigation the Commission may (i) accept commitments proposed by the company if they fully and effectively remedy the distortion, (ii) impose redressive measures, or (iii) issue a no objection decision.
