China's Ministry of Commerce has criticized the European Union (EU) for its foreign subsidy investigations into Chinese businesses, calling them unfair trade and investment barriers. The six-month probe, initiated by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, targeted Chinese companies in sectors like locomotives, photovoltaics, wind power, and security equipment.
According to China's Ministry of Commerce, the EU's investigations violated World Trade Organization principles by enforcing regulations selectively and using vague criteria to determine foreign subsidies. Stakeholders involved in the probe argued that the EU imposed unreasonable penalties, tight timeframes, and lacked transparency.
The ministry highlighted that the broad scope of the EU’s inquiries has placed a significant burden on Chinese companies, resulting in over $1 billion in abandoned bidding projects and additional losses exceeding $1 billion in other affected ventures. These measures not only restrict Chinese products and investments in the EU market but also increase operational costs and consumer prices within the EU, potentially leading to job losses.
He Yadong, spokesperson for the ministry, emphasized that during the investigations, the European Commission did not provide completed answer sheets or relevant comments. Moving forward, China plans to engage in bilateral consultations to address and urge the EU to modify its practices. The goal is to ensure an open, fair, and non-discriminatory environment for Chinese enterprises operating in Europe.
Reference(s):
China says EU's foreign subsidy probes trade and investment barriers
cgtn.com
