Chinese companies abandon solar tender in Romania after EU investigation May 14, 2024

The EU wants to increase its renewable energy to reduce greenhouse gas emissions (Sergei GAPON)

By AFP - Agence France Presse

Chinese companies abandon solar tender in Romania after EU investigation

Two Chinese-owned solar panel manufacturers have withdrawn from a public tender in Romania after the European Union launched an investigation into foreign subsidies, Brussels said on Monday.

Brussels is seeking to increase Europe's renewable energy to reduce greenhouse gas emissions while moving away from over-reliance on cheaper Chinese wind and solar technology.

More broadly, the EU wants to defend European industry against growing threats from China and the United States and has launched several investigations into Chinese companies over state subsidies.

In April, the European Commission launched an investigation into two consortia suspected of receiving subsidies that Brussels said were undercutting rivals in Europe.

After the Chinese companies withdrew their bid, the commission said it would “close its in-depth investigation”.

The investigation was launched under new rules that came into force last year and which seek to prevent foreign subsidies from undermining fair competition in the EU.

“We are investing massively in installing solar panels to reduce our carbon emissions and energy bills, but this must not be at the expense of our energy security, our industrial competitiveness, and European jobs,” said EU internal market commissioner Thierry Breton.

The new rules ensure that “foreign companies participating in the European economy do so while respecting our rules of fair competition and transparency,” he added.

But the China Chamber of Commerce for the EU criticized the rules “as a tool of economic coercion” that left Chinese companies with “no commercially prudent option but to withdraw.”

The CEO claimed that Chinese companies faced more scrutiny than other non-EU companies and said the withdrawal “undermines” the EU's “green transformation efforts”.

- Increased trade tensions

One of the two consortia targeted in the investigation includes Romania's Enevo group and a German subsidiary of Chinese parent company Longi Green Energy Technology.

Long - the world's largest solar panel manufacturer - said it remains “fully committed to working with its partners in Europe” to ensure that the continent “can meet its ambitious renewable energy and climate targets”.

The second consortium was made up of two subsidiaries, both fully controlled by the Chinese state-owned company Shanghai Electric Group.

They bid to design, build, and operate a photovoltaic park in Romania, partly financed by EU funds.

The estimated value of the contract was around 375 million euros (US$ 405 million).

Europe relies heavily on foreign solar panels. More than 97% of the panels in Europe are imported, mainly from China, according to Brussels.

Other EU investigations have been opened into Chinese subsidies for electric cars trains and wind turbines, as trade tensions rise between the two sides.

A row over solar panels is nothing new for the EU.

In 2013, the EU imposed anti-dumping duties after European manufacturers claimed that imports of Chinese panels were hurting their companies, although these duties were eliminated five years later.

raz/ec/cw