Beijing Criticizes EU for Imposing Trade Barriers

The Chinese Ministry of Commerce has alleged that Brussels is selectively applying its regulations related to foreign subsidies. Read Full Article at RT.com.

Beijing Criticizes EU for Imposing Trade Barriers
The Chinese Ministry of Commerce has accused Brussels of selectively enforcing its regulation governing foreign subsidies, further straining the commercial ties between China and the European Union.

In a statement released on Thursday, the Ministry stated that the tactics employed by the EU in its foreign subsidy investigations against Chinese companies create trade and investment barriers.

This development comes in the wake of an investigation initiated by Beijing in July of the previous year, which was a response to Brussels’ inquiries into whether subsidies provided by the Chinese government to electric vehicle manufacturers were distorting competition within the EU.

The Ministry’s report pointed out that the “selective enforcement” of the EU’s Foreign Subsidies Regulation is a significant issue, and noted that the criteria set by EU lawmakers for identifying foreign subsidies are “quasi-ambiguous.” The investigative process “imposes a heavy burden on Chinese enterprises,” necessitating the submission of extensive information.

Additionally, the Ministry criticized the investigative procedure as being “not open and transparent,” which adds to the uncertainty for companies under investigation. It also highlighted that enterprises face the threat of fines should they choose not to cooperate.

In October 2023, the European Commission initiated an anti-subsidy investigation specifically into imports of passenger battery electric vehicles from China. Subsequently, a year later, the EU's executive body increased import duties on these vehicles to over 45%.

In response, Beijing placed provisional tariffs on EU-origin brandy and issued warnings of potential higher tariffs on fuel-powered vehicles with large-displacement engines. Furthermore, Chinese authorities have lodged a complaint with the World Trade Organization regarding what they describe as “trade protectionism” enacted by Brussels.

Frederick R Cook contributed to this report for TROIB News