The European Union is showing restraint in launching a formal investigation into China's wind power industry, citing the absence of "very clear evidence" of unfair practices, according to an EU official. The wind energy sector has become a formidable competitor for Europe, threatening the continent's leadership position. The EU's decision follows a leaked wind energy proposal that revealed plans to scrutinize foreign subsidies as part of a broader action plan to bolster its struggling wind industry.

While the EU's probe into Chinese electric vehicles (EVs) raised concerns in China, resulting in fears of immediate punitive measures, the EU official explained that, for wind energy, they currently lack sufficient evidence to proceed. Reports and indications have raised doubts about financial conditions, including deferred payments, but these do not yet substantiate trade violations. The EU's renewable energy industry, particularly wind power, has faced increasing challenges, including inflation and global competition, with China's rapid rise posing a significant risk.

European turbine makers reported operating losses in 2022, putting the EU's renewable targets and energy security in jeopardy. The EU recognizes the critical nature of its clean energy industry and is determined to safeguard it amidst growing global competition and shifting dynamics.

Source: reuters.com