EU probes Chinese subsidy claims in Romania solar tender

The European Union has opened two investigations into whether two Chinese bidders benefited excessively from subsidies in their offers in a public tender for a solar power park in Romania, the European Commission said on Wednesday.

The first investigated consortium is composed of Romania’s ENEVO Group and a subsidiary of LONGi Green Energy Technology Co. The second involves subsidiaries of the Chinese state-owned Shanghai Electric Group Co.

According to an EU official, the total contract was worth about 375 million euros.

ENEVO and LONGi did not immediately respond to requests for comment, while Shanghai Electric could not immediately be reached.

These are the second and third investigations under the EU foreign subsidies regulation, which has allowed the European Commission since July 2023 to assess whether subsidies allow companies to submit overly advantageous offers.

The China Chamber of Commerce to the EU said it was gravely concerned by the investigations and said the regulation was seriously distorting the level playing field for Chinese companies operating in the EU.

The Commission said it was justified in opening in-depth investigations since there were sufficient indications that both Chinese firms had been granted foreign subsidies that distorted the EU single market.

The Commission has until August 14 to take a decision.

The EU’s first investigation into foreign subsidies was ended after Chinese train maker CRRC Qingdao Sifang Locomotive withdrew from a Bulgarian tender for electric trains.

Source: Reuters