2024-07-11 00:33:29
The Chinese government announced today that it is launching a retaliatory investigation into EU trade practices, including the use of anti-subsidy investigations, DPA reported.
The EU has launched investigations into subsidies received by Chinese suppliers of wind and solar energy components, as well as the China Railway Company.
China’s Ministry of Commerce announced that it would launch a retaliatory investigation to assess whether these actions by Brussels are intended to erect an “investment and trade barrier” against Chinese companies.
The Brussels inquiry will focus on EU industrial policies on rail locomotives, photovoltaic systems, wind power and safety equipment.
The study must be completed by January 10, 2025, the Chinese ministry said, although an extension is possible.
There are tensions over Chinese exports in foreign markets, with Washington and Europe accusing Beijing of supporting sectors such as green technology with massive government subsidies.
They argue that China is deliberately creating this “overcapacity” and then dumping goods on their markets at artificially low prices and undermining local businesses. China rejects these accusations.
Another point of contention is electric vehicles made in China, on which the EU has imposed punitive tariffs since last week. The measure prompted Beijing to launch an anti-dumping investigation into EU pork and pork products. Beijing is conducting a similar investigation into European alcohol producers.
China’s decision today comes in response to EU investigations involving, for example, Chinese wind turbine manufacturers that allegedly gained an unfair competitive advantage through subsidies.
Brussels also investigated the bid of a state-owned Chinese train manufacturer for a public procurement by the Bulgarian Transport Ministry due to competition concerns, but ended the investigation in March after the Chinese company withdrew, BTA reports.