Stock Markets February 4, 2026

Beijing Condemns EU Probe of Goldwind, Urges Restraint in Use of Subsidy Rules

China's commerce and foreign ministries push back after EU regulators open an inquiry into alleged foreign subsidies for the wind-turbine maker

By Maya Rios
Beijing Condemns EU Probe of Goldwind, Urges Restraint in Use of Subsidy Rules

China has vowed to protect its companies after the European Union initiated an investigation into Goldwind Science & Technology under the bloc's Foreign Subsidies Regulation. Beijing's commerce ministry called on the EU to retract what it described as wrongful actions and to be cautious in deploying unilateral investigative tools, while the foreign ministry labeled the measures discriminatory and warned they could erode confidence among Chinese investors in Europe.

Key Points

  • EU state aid regulators have launched a probe into Goldwind under the Foreign Subsidies Regulation to assess whether foreign subsidies gave the company an unfair advantage in European markets - affects the wind power and renewable equipment sectors.
  • China's commerce ministry requested that the EU "immediately correct its wrongful actions" and urged caution in using the Foreign Subsidies Regulation as a unilateral investigative instrument - relevant to trade and regulatory policy.
  • China's foreign ministry called the EU measures "discriminatory and restrictive," warning that frequent use of unilateral trade and economic tools damages the EU's image and undermines Chinese firms' confidence in investing in Europe - impacts cross-border investment sentiment.

China has pledged to stand behind its firms following an announcement by European Union state aid regulators that the wind turbine manufacturer Goldwind Science & Technology is the subject of an inquiry into whether it received foreign subsidies that may have given it an unfair market advantage in Europe.

On Tuesday EU regulators said they were examining evidence that Chinese support to Goldwind could have distorted competition in European markets. The probe was opened under the EU's Foreign Subsidies Regulation, the mechanism the bloc uses to review potential distortions resulting from subsidies provided by non-EU governments.

Responding on Wednesday, a spokesperson for China's commerce ministry urged the EU to "immediately correct its wrongful actions" and to "exercise caution in using the Foreign Subsidies Regulation unilateral investigative tool." The spokesperson also called on the EU to work toward establishing "a fair, just and predictable market environment for China-EU cooperation."

"We urge the EU to immediately correct its wrongful actions and exercise caution in using the Foreign Subsidies Regulation unilateral investigative tool," a Chinese commerce ministry spokesperson said Wednesday.

China's foreign ministry issued its own statement the same day, characterizing the EU measures as "discriminatory and restrictive" and saying they send "a protectionist signal." Foreign ministry spokesperson Lin Jian told reporters that the EU's "frequent use of unilateral trade and economic tools" harms its image and undermines the confidence of Chinese businesses considering investment in Europe.

Foreign ministry spokesperson Lin Jian said the EU's "frequent use of unilateral trade and economic tools" damages its image and weakens Chinese companies' confidence about investing in Europe.

The exchange highlights tensions between the EU's enforcement of its foreign subsidy rules and Beijing's objections to what it perceives as targeting of Chinese enterprises. Officials in both Chinese ministries framed their comments around protecting firms and preserving a predictable environment for bilateral cooperation.

Please note that public statements quoted above were made by officials identified by their ministry affiliations as reported by regulators and ministry spokespeople; no additional details on the EU inquiry or investigative findings were provided in those statements.


Summary: EU regulators have opened an investigation into whether Goldwind received foreign subsidies that gave it a competitive edge in Europe. China has publicly opposed the probe, with commerce and foreign ministry spokespeople calling for corrective action and caution in the use of unilateral investigative tools under the Foreign Subsidies Regulation.

Risks

  • Regulatory uncertainty for companies in the wind power and renewables supply chain in Europe stemming from investigations under the Foreign Subsidies Regulation.
  • Potential erosion of investment confidence among Chinese firms considering projects or capital deployment in Europe due to perceived discriminatory or protectionist measures.
  • Increased trade and diplomatic friction between China and the EU if disputes over subsidy enforcement and investigative tools persist, which could affect broader energy and infrastructure cooperation.

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