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

BEIJING — China said Wednesday it is investigating whether the European Union engaged in unfair trade practices in its probes of Chinese companies bidding for projects in the 27-nation bloc, the latest move in a trade war between the two economic giants.

The investigation will cover wind power, photovoltaics, safety equipment and electric trains, China’s commerce ministry said.

The EU has introduced a new regulation to investigate companies bidding for projects in the European Union. This includes determining whether Chinese subsidies are giving wind companies an unfair advantage in the competition for projects in Spain, Greece, France, Romania and Bulgaria.

In response to the investigation, China accused the European Union of protectionism and “recklessly distorting” the definition of subsidies. The EU has also investigated Chinese companies that bid for a 455-megawatt solar park in Romania and the purchase of 20 electric trains in Bulgaria.

The Chinese investigation is expected to be completed by January 10, with a possible three-month extension to April. It was requested by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

Last week, the EU imposed provisional tariffs on Chinese-made electric vehicles over subsidies it says give an unfair advantage to automakers exporting from China. In response, China launched an investigation into European pork exports.

The EU and the US fear that cheap Chinese cars will overwhelm their domestic producers and lead to factory layoffs. Chinese car exports rose about 30% in the first six months of this year.