The European Union’s (EU) measures to protect its companies from foreign subsidies are an obstacle to trade and investment, China’s Ministry of Commerce said Thursday. It is the latest statement by Beijing in its ongoing trade dispute with the European bloc. TASR informs about it based on a Bloomberg report.
On Thursday, China’s Ministry of Commerce released the findings of its investigation into the EU’s foreign subsidy regulation. It identified “selective implementation” as the main problem. The investigation began in July last year after the EU introduced tariffs on the import of electric vehicles from China.
Beijing has not specified any steps it plans to take after the investigation is over. However, he previously stated that if foreign policy is determined by trade barriers, he will conduct bilateral and multilateral negotiations to settle disputes. It could also take “appropriate measures,” which could include “retaliatory actions,” according to the Commerce Department.
Additional tariffs on electric cars from China
Che Yatung, a spokesman for the Ministry of Commerce, said at a briefing later Thursday, without giving details, that Beijing would take steps, such as asking the EU for talks.
China launched the investigation after the EU imposed additional tariffs of up to 35% on electric cars made in China, bringing total tariffs on some Chinese vehicles to as high as 45%. The reason is subsidies from Beijing, which have given China’s electric vehicle industry an unfair advantage.
But China doesn’t like that the EU has launched in-depth investigations into only Chinese companies, along with surprise inspections and other tough enforcement measures against Chinese firms. According to Beijing, this means that “Chinese products are treated worse than products from third countries in the export process to the EU,” the Ministry of Commerce said.
Investigations and raids in Chinese businesses
Jens Eskelund, president of the European Union Chamber of Commerce in China, defended Brussels’ actions. He stated that they are aimed at combating the distorting effects that subsidies can have, while their goal is to ensure equal conditions for companies in the EU single market.”
EU rules give Brussels the power to scrutinize subsidies it deems capable of distorting markets in the 27-nation bloc. Regulatory authorities can issue fines, suspend tenders or outright block takeovers.
Under the law, the EU last year launched an investigation into a Chinese train manufacturer that planned to sell trains to Bulgaria, causing the company to withdraw. Last year, the European Commission also raided the offices of the Chinese security equipment supplier Nuctech in Poland and the Netherlands.
