🔎 The EU Commission today announced that it will launch an inquiry into Chinese suppliers of wind turbines under the new Foreign Subsidies Regulation. Commission Executive Vice-President for Competition Margarethe Vestager announced that the EU will investigate unfair trade practices in five markets: 🇧🇬 🇫🇷 🇬🇷 🇷🇴 🇪🇸 Bulgaria, France, Greece, Romania, Spain. 💬 “We fully understand the Commission’s rationale,” said WindEurope CEO Giles Dickson. “Chinese wind turbine manufacturers are offering much lower prices than European manufacturers and incredibly generous financing terms with up to 3 years deferred payment. You can’t do that without unfair public subsidy. What’s more the European manufacturers aren’t allowed to offer deferred payment like that under OECD rules.” 🔗👇 Read our press release for more background and information on the EU's Foreign Subsidies Regulation: https://lnkd.in/e3xhki6f
Chinese taxes are also only 50% of the Tax costs for a European manufactor.
Energy Analyst - Founder & CEO at IntelStor
1moPension reforms, reduction in the power and influence of union collective bargaining, faster permitting as well as tax reductions will have more influence on the competitiveness of EU-based companies in the EU market than countervailing duties on a basically non-existent threat of Chinese OEMs and supply chain companies in the EU market. The Chinese don't manufacture a wind turbine in China for EUR 350k/MW and then sell it in Spain for that price, undercutting domestic companies. If anyone thinks that's how the market works, they do not understand basic economics. If the EU Commission wanted to soften the blow of layoffs in the EU due to lack of profitability for EU-based supply chain companies, then why not welcome the foreign direct investment which would create factories that would create jobs and a tax base? This is a tempest in a teacup if I ever saw one, and needless fear mongering which does not address the substantive issues faced by EU companies, particularly within the EU market where they have jurisdiction. https://www.linkedin.com/pulse/eu-commission-investigation-chinese-wind-energy-subsidies-totaro-grdsf