China launches investigation into European commerce practices

The European Chamber of Commerce in China calls on Beijing to abolish restrictions and regulatory obstacles that hinder international funding © AFP/Archives THIERRY CHARLIER

China introduced on Wednesday that it was investigating unfair commerce practices by the European Union (EU), following a sequence of procedures by Brussels focusing on Chinese language firms suspected of distorting competitors.

The transfer comes amid rising tensions between China and the EU, a key buying and selling associate for the Asian large.

The European Fee has launched a sequence of procedures focusing on China in latest months.

Essentially the most emblematic issues Chinese language electrical autos offered within the EU, whose costs are thought of artificially low by Brussels because of state subsidies which distort the market and hurt the competitiveness of its producers.

In every continuing, China has warned that it’s going to take “all needed measures” to reply.

– « Obstacles au commerce » –

“The Commerce Division is investigating the European Union’s practices in imposing commerce and funding boundaries on Chinese language firms,” it stated in an announcement Wednesday.

China’s Ministry of Commerce stated its choice was prompted by a criticism from the nation’s Chamber of Commerce.

It significantly issues “merchandise reminiscent of locomotives, photovoltaic power, wind power”, the ministry specified. Sectors particularly focused by Brussels within the context of assorted procedures.

The EU subsidy investigation is because of finish on 10 January 2025 however could also be prolonged by three months.

The EU, China’s second largest buying and selling associate after america, launched its first investigation in mid-February, underneath the brand new anti-subsidy rules, in opposition to a subsidiary of the Chinese language railway producer CRRC, the world primary within the sector.

This state group, a candidate for the availability of electrical trains in Bulgaria, lastly withdrew from the decision for tenders on the finish of March.

In April, the Fee introduced a second investigation focusing on two consortiums bidding to design, construct and function a photovoltaic park in Romania.

The primary consortium features a subsidiary of the Chinese language large Longi, the world’s main producer of photovoltaic cells. The second brings collectively two subsidiaries managed by the Chinese language state group, Shanghai Electrical.

– “Discriminatory” –

The Fee additionally opened an investigation into Chinese language public procurement of medical units on the finish of April, suspecting “discriminatory” practices. One investigation issues wind energy.

China warned final month that it “reserves the fitting” to lodge a criticism with the World Commerce Group (WTO) after the EU introduced tariffs on Chinese language electrical autos.

EU Ambassador to China Jorge Toledo on Sunday lamented that there was “just about no progress” in talks with Beijing over Chinese language electrical autos.

“Now we have proposed to the Chinese language authorities to begin discussions,” he stated on the World Peace Discussion board in Beijing, saying he had solely not too long ago acquired a response from them. Electrical energy is a key sector that China needs to capitalize on to reinvigorate its economic system.

China had already introduced in January that it was investigating an alleged infringement of competitors legislation in wine spirits, reminiscent of cognac, imported from the EU and specifically from France, which had given rise to the Brussels investigation.

In June, it additionally launched an anti-dumping investigation into imports of pork and pork merchandise from the EU, items primarily produced in Spain, France, the Netherlands and Denmark.