China launches investigation into EU trade practices amid growing tension
- In Reports
- 11:20 PM, Jul 10, 2024
- Myind Staff
China has declared a new investigation into the European Union's trade practices, marking a recent development in the emerging trade tensions between the two economic giants. The Chinese Commerce Ministry declared on Wednesday that the probe will scrutinise whether the EU has engaged in unfair practices in its investigations of Chinese companies vying for projects within the 27-nation bloc.
The Chinese investigation will target sectors such as wind power, photovoltaics, security equipment, and electric trains specifically. This decision comes in response to the EU's recent application of new regulations to scrutinise companies bidding for projects in Europe. Notably, the EU has been investigating whether Chinese subsidies give wind turbine companies an unfair edge in competition for projects in countries including Spain, Greece, France, Romania, and Bulgaria.
China has accused the EU of protectionism and rebuked what it calls the "reckless distortion" of subsidy definitions. In addition to the wind turbine sector, the EU has also been examining Chinese bids for a 455-megawatt solar park in Romania and the procurement of 20 electric trains in Bulgaria.
The Chinese Commerce Ministry has stated that their investigation, requested by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, is expected to conclude by January 10, 2025. However, the timeline may be extended by up to three months, potentially pushing the deadline to April.
This announcement follows the EU's imposition of provisional tariffs on China-made electric vehicles last week, citing subsidies that allegedly provide an unfair advantage to Chinese automakers exporting to Europe. In retaliation, China has initiated an investigation into European pork exports.
Both the EU and the United States have expressed concerns that affordable Chinese automobiles could inundate their markets, threatening domestic producers and potentially leading to factory layoffs. Notably, Chinese auto exports have surged by approximately 30% in the first half of this year.
As the trade conflict between China and the EU increases, the outcomes of these investigations could have significant consequences for international trade and economic relations between the two regions.
Image source: AP Photo
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