The European Commission has launched an in-depth investigation into Chinese wind turbine maker Goldwind Science & Technology under the foreign subsidies regulation, a tool that has previously irked Beijing.

The investigation will assess whether subsidies from the Chinese state illegally boosted the company’s position in the European market.

The commission said a preliminary investigation found “indications” that Goldwind “may have been granted foreign subsidies that distort the internal market”.

The foreign subsidies regulation was adopted in July 2023 and since then has been used frequently against Chinese companies in sectors such as railway rolling stock, solar energy and security scanning.

While the probe was described as “ex officio”, meaning it was launched independently by the commission, European wind turbine manufacturers have been asking for protection for several years.

They fear that hyper-competitive Chinese firms could lead to a hollowing out of the industry in Europe, a fate the solar power sector suffered a decade ago.