China launches investigation into trade barriers imposed by the EU – DW – 10.07.2024

Beijing’s Commerce Ministry announced on Wednesday that it was launching an investigation into European policies as part of an investigation into Chinese companies over subsidies.

“The Ministry of Commerce will conduct a trade and investment barriers investigation into the relevant practices used by the EU in its investigations against Chinese companies,” the ministry said on its website.

The investigation, which will run until at least January 2025, followed a complaint by the national chamber of commerce over the import and export of machinery and electronics. The investigation will focus on the EU’s practices in its investigations of Chinese companies under the Foreign Subsidies Regulation that distort the European Union’s internal market.

A statement from Beijing said the investigation would look at the impact of the EU measures on specific sectors, including “products such as railway locomotives, photovoltaics, wind power and safety inspection equipment.”

Trade tensions between the EU and China

Trade tensions between China and the 27-nation bloc have escalated recently, with Beijing warning last month that friction with the EU over electric vehicle imports could spark a trade war.

Last year, the European Commission concluded that Chinese state subsidies for the electric car industry unfairly disadvantaged European competitors.

As a result, the EU imposed provisional tariffs of up to 38 percent on Chinese electric car imports, despite uproar from manufacturers and Chinese business groups.

In January, Brussels announced several measures aimed at keeping sensitive technologies and key infrastructure out of the hands of global rivals, especially China.

The new restrictions require stricter scrutiny of foreign investments, tighter export controls and more regulations on who can participate in research into important technologies.

jsi/sms (AFP, EFE, AP)