(ANSA) - ROME, APR 16 - Electric trains in Bulgaria, solar panels in Romania.
    The new investigations into wind turbines follows earlier EU investigations into Chinese subsidies for solar panels, electric cars and trains, as trade tensions with Beijing escalate. The initiative was launched under new rules in place since last year that aim to prevent foreign subsidies from undermining fair competition within the EU.
    The EU opened its first probe under the Foreign Subsidies Regulation in February, targeting a subsidiary of Chinese rail giant CRRC, which took part in a tender in Bulgaria to supply electric trains. That investigation was closed after the subsidiary withdrew from the tender.
    A second probe targets Chinese-owned solar panel manufacturers seeking to build and operate a photovoltaic park in Romania, partly financed by EU funds.
    "Just last week, we opened investigations into bids by Chinese companies that may unduly have been advantaged in public tenders for solar panels in Romania," Vestager said in her speech.
    Under the EU's Foreign Subsidies Regulation, companies are required to notify their participation in public procurement tenders in the EU when the estimated value of the contract exceeds 250 million Euro and when the company has been awarded foreign financial contributions of at least four million Euro from at least one third country in the three years preceding the notification.
    The Foreign Subsidy Regulation came into force on July 12, 2023.
    The rules allow the Commission to tackle the distortions caused by foreign subsidies and therefore enables the EU to ensure a level playing field for all businesses which carry out their activity on the domestic market, while remaining open to trade and investments.
    Following the preliminary examination of all submissions, the Commission considered that it was justified to initiate an in-depth investigation for two bidders in the Romanian tender, as there were sufficient indications that both had received foreign subsidies distorting the internal market.
    Ongoing electric vehicle stand-off.
    In her speech in Princeton, Vestager also referred to the EU's long-standing concerns about unfair competition from Chinese electric vehicle manufacturers.
    "In October last year, the European Commission launched an anti-subsidy investigation into the import of electrical vehicles from China. If we determine that those electrical cars have been illegally subsidised, we will impose remedies," Vestager said.
    According to the Commission, Chinese electric cars are normally around 20 percent cheaper than models built in the EU. The anti-subsidy investigation could now lead to punitive tariffs being imposed.
    Last week, German car manufacturers said they are against possible European punitive tariffs on the import of electric cars from China. The German Association of the Automotive Industry (VDA) called for a willingness to engage in dialogue on both sides to avoid harming the sector's development.
    "Anti-subsidy measures, such as additional tariffs, would not solve the challenges for the European and German automotive industry. On the contrary: the purpose of countervailing duties envisaged by the European Commission could quickly have a negative impact in the event of a trade conflict," VDA president Hildegard Müller told the Sunday edition of the German newspaper Die Welt.
    According to Germany's Center Automotive Research, German car manufacturers sell 30 to 40 percent of their output on the Chinese market. In the event of European punitive tariffs, these manufacturers could therefore be the first target of possible Chinese countermeasures.
    A preliminary announcement by the Commission is planned by June 5, the newspaper reported.
    (The content is based on news by agencies participating in the enr, in this case AFP, Agerpres, ANSA, dpa, EFE, PAP). (ANSA).