Trade conflict China investigates EU actions in subsidy investigations
The trade dispute between Beijing and Brussels is entering the next round. Following the EU tariffs on e-cars, China is responding with its own investigation. This concerns completely different areas.
10.07.2024, 11:11
SDA
China is investigating EU practices that Brussels used in its investigations into foreign subsidies. Beijing wants to determine whether the EU's latest measures constitute an obstacle to free trade.
The Ministry of Commerce announced a corresponding investigation. The Chinese Chamber of Commerce for the Import and Export of Machinery and Electrical Products had previously reportedly submitted a corresponding request.
According to the ministry, railroads, solar and wind power as well as safety equipment are affected. The investigation must be completed by January 10, 2025; an extension would be possible until April 10.
The EU Commission had previously initiated investigations in these areas. It investigated Chinese manufacturers of wind turbines, for example, who are alleged to have gained an unfair competitive advantage through subsidies. Brussels also investigated the offer of a state-owned Chinese train manufacturer for a public tender by the Bulgarian Ministry of Transport due to competition concerns.
Protracted dispute
Brussels and Beijing have been arguing for some time that China is using unfair trade practices from Brussels' point of view and is creating overcapacity on its own market through state subsidies, for example, which then flows abroad. One 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 point of contention is electric cars manufactured in China, which the EU has been imposing punitive tariffs on for the time being since last week. In an initial backlash, Beijing had already announced an investigation into pork and by-products from the EU. The People's Republic is also investigating spirits from the countries of the confederation.
