EU probes Chinese-owned solar panel firms

BRUSSELS

The European Union has announced investigations targeting two Chinese-owned solar panel manufacturers suspected of receiving subsidies as trade tensions heat up between Brussels and Beijing.

Brussels has in the past year taken stronger action to defend European industry against growing threats from China and the United States. But the EU also faces a dilemma.

The 27-nation bloc wants to build up its renewable energy as it races to reach net zero greenhouse gas emissions by 2050, but at the same time move away from excessively relying on cheaper Chinese wind and solar technology.

Chinese state subsidies are already in the EU's crosshairs. In September last year, Brussels started a probe into Chinese electric car subsidies that could lead to punitive tariffs on vehicles it believes are unfairly sold at a lower price.

Beijing at the time warned it would harm trade relations, and raised fears the EU was risking a trade war.

This week’s probes were launched under new rules that came into force in July last year and seek to prevent foreign subsidies from undermining fair competition in the EU.

Under investigation are two consortiums, one of which includes the Enevo group in Romania and a German subsidiary of Chinese parent company Longi Green Energy Technology.

Longi is the world's biggest solar panel manufacturer.

The second consortium is made up of two subsidiaries both fully owned and controlled by Chinese state-owned firm, Shanghai Electric group.