China launches investigation in response to EU solar, wind and other products

BEIJING (AP) — China’s Commerce Ministry said Wednesday it would launch an investigation into whether the European Union used unfair trade practices in its investigation of Chinese companies.

It said the investigation would focus on wind power, photovoltaics, safety equipment and other areas and would be completed before January 10 next year, with a possible three-month extension until April.

The investigation was requested by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

The announcement is apparently a retaliatory measure for the EU investigations into Chinese companies launched earlier this year.

This includes an investigation into whether Chinese subsidies give wind turbine manufacturers an unfair advantage in competing for projects in five EU member states – Spain, Greece, France, Romania and Bulgaria.

The EU also announced investigations into two Chinese solar module manufacturers that had bid for a 455-megawatt solar park in Romania.

In response to a new EU investigation into Chinese wind turbine manufacturers, China has accused the European Union of protectionism and a “reckless distortion” of the concept of subsidies.

In June, the EU raised tariffs on Chinese electric vehicles, escalating a trade dispute over Beijing’s export subsidies, which the EU fears are hurting European carmakers.

The European Commission, the EU’s executive body, announced the introduction of provisional tariffs that would mean additional tariffs of up to 38 percent for Chinese car manufacturers – instead of the current 10 percent.