Trade dispute with Beijing - China investigates EU actions in subsidy investigations
China investigates practices of the EU that Brussels used in its investigations into foreign subsidies. Beijing aims to determine if the latest EU measures pose a barrier to free trade. The Ministry of Commerce announced such an investigation. Previously, the Chinese Chamber of Commerce for Import and Export of Machines and Electrical Products filed a corresponding application, as reported.
According to the Ministry, the investigations concern railway sectors, areas of solar and wind power, and security equipment. The investigation must be completed by January 10, 2025; a extension would be possible until April 10.
The EU Commission initiated investigations in these areas earlier. For instance, it investigated Chinese wind turbine manufacturers who allegedly gained an unfair competitive advantage through subsidies. Brussels also examined the offer of a state-owned Chinese railway supplier for a public tender of the Bulgarian Transport Ministry due to competition concerns.
Long-lasting dispute
Brussels and Beijing have been arguing for a long time about China's unfair trading practices from Brussels' perspective, including the use of state subsidies to create excess capacity on the domestic market, which then flows into the international market. An example of this is the photovoltaic industry. China is accused of putting pressure on foreign markets with cheap solar cells due to low domestic demand.
Another contentious issue are Chinese-made electric vehicles, which the EU has provisionally imposed tariffs on since last week. Beijing had already announced an investigation against pork and related products from the EU in a first countermeasure. The People's Republic is also investigating brandy from EU countries.
- The EU Commission's investigation into Chinese wind turbine manufacturers, who allegedly received subsidies, has further fueled the long-standing trade dispute between Brussels and Beijing over subsidies.
- The ongoing investigation by the EU into the foreign subsidy practices of the EU, as investigated by Brussels, is closely watched in Beijing as it relates to China's involvement in the global world trade.
- European countries are concerned that China's use of subsidies in areas such as solar and wind power, which are under investigation by the EU Commission, could harm fair trade practices and create an unfair competitive advantage for Chinese companies.
- The Trade Dispute between the EU and China over subsidies, which originated from Brussels' investigations into foreign subsidies, has led to a series of investigations by both parties in various sectors, including railway sectors, raw materials, and agricultural products.
