The European Union has launched investigations into two groups of companies involving Chinese solar panel makers, suspected of engaging in unfair competition with the EU’s manufacturing sector. The European Commission will assess whether foreign subsidies allowed the two consortia to submit overly competitive offers for a solar park in Romania, partially funded by EU money. The two groups include subsidiaries of China’s LONGi Green Energy Technology Co. and Shanghai Electric Group Co., a state-owned enterprise, and the investigation aims to determine if they have received foreign subsidies that distort the EU market.
In addition to the solar panel investigation, the EU has also probed China’s state support for electric vehicle makers and addressed allegations by European biodiesel producers that China has been dumping the renewable fuel into the EU market at artificially low prices. The European Commission may impose tariffs on Chinese biodiesel imports if the dumping is confirmed. Solar panels, like biodiesel, play a crucial role in Europe’s transition to clean technologies, making it strategically important for the EU’s clean energy production, jobs, and security of supply.
Commissioner Thierry Breton emphasized the importance of solar panels for Europe’s strategic interests while addressing concerns that viable European industries are being priced out of the market by foreign competition. Jens Eskelund, president of the European Union Chamber of Commerce in China, highlighted the broader concern of European industries facing challenges from external competitors. Despite these concerns, China remains steadfast in its commitment to exporting its key products, including electric vehicles, solar panels, and lithium batteries. China has also launched its own anti-dumping investigation into brandy imports from the EU, indicating its readiness to defend its interests in international trade.
Premier Li Qiang of China stated the country’s focus on exporting its new trio of products, emphasizing the importance of electric vehicles, solar panels, and lithium batteries in China’s global trade strategy. China’s proactive stance in promoting its key industries for export highlights the country’s determination to compete in the global market. The ongoing investigations and trade disputes between the EU and China underscore the complexities and challenges of international trade relations, as both sides seek to protect their markets and industries. The outcome of these investigations will likely have a significant impact on the future trade dynamics between the EU and China in the renewable energy sector.
