China warns EU inquiry into Goldwind could hurt investment ties

China has accused the European Union of taking discriminatory and protectionist action after Brussels opened a formal investigation into Chinese wind turbine manufacturer Goldwind over concerns it may have benefited from unfair state subsidies.

Beijing’s criticism came a day after the European Commission announced it would carry out an in-depth probe into the company, one of the world’s largest suppliers of wind turbines, as part of the bloc’s efforts to police foreign subsidies that could distort competition within the EU’s internal market.

Speaking at a regular press briefing on Wednesday, foreign ministry spokesman Lin Jian said the investigation sent what he described as troubling signals to Chinese businesses. He argued that the EU’s increasing reliance on unilateral trade instruments and restrictive measures against Chinese firms amounted to protectionism.

Lin warned that the move could weaken confidence among Chinese companies considering investment in Europe, at a time when economic ties between the two sides are already under strain.

The European Commission said on Tuesday that a preliminary assessment had found indications Goldwind “may have been granted foreign subsidies that distort the internal market” across the 27-nation bloc. It stressed, however, that opening a full investigation does not pre-judge the outcome.

If the commission ultimately concludes that competition rules have been breached, it could accept commitments offered by the company to address its concerns or impose corrective measures designed to level the playing field.

Goldwind has been expanding its international footprint as it seeks growth beyond China’s domestic market, bringing it into direct competition with European and other Western turbine manufacturers. The company’s global ambitions come as China has emerged as the dominant force in the wind power sector, accounting for the largest share of installed capacity worldwide.

That dominance has been driven by years of strong government support, rapid expansion of China’s domestic renewable energy market and economies of scale that have allowed Chinese manufacturers to offer lower prices.

The investigation into Goldwind is the latest example of the EU’s tougher stance on foreign subsidies, part of a broader strategy aimed at protecting European industries while maintaining openness to global trade. Brussels has argued that the measures are necessary to prevent unfair advantages, particularly in strategic sectors such as clean energy.

China, however, has repeatedly warned that such actions risk escalating trade tensions and undermining cooperation at a time when both sides say they are committed to tackling climate change and accelerating the global energy transition.

As the probe unfolds, analysts say it will test the balance the EU is trying to strike between safeguarding competition and avoiding a deeper rift with China, whose clean-energy firms are playing an increasingly central role in global power markets.