China investigates EU actions in subsidy investigations
Beijing (dpa) - China is investigating 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 the investigation. Previously, the Chinese Chamber of Commerce for Import and Export of Machines and Electrical Products filed a corresponding application, according to the ministry.
Affected sectors reportedly include railways, solar and wind energy, and security equipment. The investigation must be completed by January 10, 2025; a extension would be possible until April 10.
The EU Commission had previously initiated investigations in these sectors. For instance, it was investigating Chinese wind turbine manufacturers who allegedly gained an unfair competitive advantage through subsidies. The EU Commission also investigated the bid of a state-owned Chinese train manufacturer for a public tender of the Bulgarian Transport Ministry due to competition concerns.
Prolonged 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 that then flows into foreign markets. 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 electric vehicles made in China that the EU has provisionally taxed since the 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 approach towards investigating foreign subsidies, such as in the case of Chinese wind turbine manufacturers, has triggered subsidy investigations from Beijing. These investigations aim to evaluate if the EU measures hinder free trade between China and the EU. Meanwhile, the ongoing trade dispute between Brussels and Beijing extends beyond this issue, encompassing other sectors like electric vehicles and pork products.
