Commission opens second stage of investigation under the Foreign Subsidies Regulation

The European Commission has opened an in-depth investigation under the EU’s Foreign Subsidies Regulation (FSR) to assess the activities of Chinese wind turbine manufacturer Goldwind. The Commission had first started its ex-officio investigation under the FSR into Chinese suppliers of wind turbines in 2024, based on initial suspicions of unfair foreign subsidies.

Under the Foreign Subsidies Regulation, the Commission has the power to investigate the existence of distortive foreign subsidies and impose redressive measures to remove the distorting effects. Possible foreign subsidies include grants, preferential tax measures, and preferential financing in the form of loans. During the first stage of such an investigation, the Commission assesses all sorts of evidence of alleged unfair practices. Based on the evidence gathered, the Commission may decide to open an in-depth investigation.

This is what happened now. Based on its preliminary investigation, the Commission has found indications that Goldwind may have been granted foreign subsidies which distort the internal market. Subsidies may improve Goldwind’s competitive position in the European internal market and may negatively affect competition for the supply of wind turbines and related services in the EU.

The Commission now has an 18-month deadline to finalise this second stage of the investigation. During this period, the Commission may adopt interim measures to prevent irreparable damage and preserve competition in the internal market.