China's Ministry of Commerce has raised concerns over the European Union's (EU) foreign subsidy investigations, labeling them as significant trade and investment barriers. 🌐💼
The six-month probe, initiated by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, concluded with strong criticisms of the EU's approach towards Chinese enterprises in sectors like locomotives, photovoltaics, wind power, and security equipment.
According to the ministry, the EU's investigations involved unreasonable practices that violate the World Trade Organization's core principles, such as non-discrimination. Stakeholders involved in the probe pointed out inappropriate penalties, tight deadlines, and a lack of procedural transparency.
Highlighting the issues, the probe found that the EU selectively enforced regulations with vague criteria for determining foreign subsidies. The broad scope of investigations placed an \"immense burden\" on Chinese companies, with key concepts like market distortion being defined subjectively and arbitrarily.
These actions have led to significant economic losses for Chinese enterprises, including about $1.06 billion in abandoned bidding projects and other affected projects worth over $1.06 billion. The ministry also warned that such practices could increase business costs, drive up consumer prices, and lead to job losses within the EU, hindering stable economic and social development.
Despite the probe, the European Commission did not provide any feedback or comments, according to He Yadong, the ministry spokesperson. Moving forward, the Chinese ministry plans to engage in bilateral consultations to urge the EU to revise its practices, ensuring a fair and predictable environment for Chinese businesses in Europe. 🛠️🌍
