China investigates European trade practices | kbnmart

China said Wednesday it was investigating unfair trade practices by the European Union, after the bloc opened various proceedings targeting Chinese companies suspected of distorting competition.

The Chinese investigations come as tensions mount between China and the European Union, a major trading partner of the Asian giant. In recent months, the European Commission has launched a series of measures against China.

The most notable of these measures is targeting Chinese electric cars sold in the EU, which Brussels considers to be artificially low prices due to public subsidies provided by China, which distort the market and undermine the competitiveness of European manufacturers. In early July, the EU imposed additional tariffs of up to 38% on imports of Chinese electric cars, a decision that is expected to become final in November.

Following each new EU move, China has warned it will take “all necessary steps” to respond. “The Ministry of Commerce is investigating the EU’s practices of trade and investment barriers against Chinese companies,” the ministry said in a statement on Wednesday.

The ministry said its decision was based on a complaint from the China Chamber of Commerce, and it referred to “products such as locomotives, photovoltaic power and wind power,” sectors that the EU has specifically targeted in some of its actions against China. China’s investigation into EU subsidies is due to end on January 10, 2025, but could be extended by three months.

In mid-February, the European Union, China’s second-largest trading partner after the United States, launched its first investigation, as part of its new anti-subsidy rules. The probe targeted a subsidiary of China Railway Construction Corp., the world’s leading railway manufacturer. CRRC, a state-owned company, had bid to supply electric trains to Bulgaria but withdrew its tender in late March.

In April, the European Commission announced a second investigation into two consortia that had applied to design, build and operate a solar power plant in Romania. One member of the first consortium was a subsidiary of Chinese giant Longi, the world’s leading manufacturer of photovoltaic cells. The second was a partnership between two subsidiaries of China’s state-owned Shanghai Electric Group.

In late April, the European Commission opened an investigation into Chinese public procurement of medical devices, on suspicion of “discriminatory” practices. Another investigation is focusing on wind energy.

Last month, China warned it “reserves the right” to file a complaint with the World Trade Organization, after the European Union announced additional tariffs on Chinese electric cars.

In January, Beijing announced it was investigating alleged competition violations involving wines (such as cognac) imported from the EU, particularly from France. This led to the EU’s first investigation into the matter.

In June, China also launched an anti-dumping investigation into imports of pork and pork products from the European Union, which are mainly produced in Spain, France, the Netherlands and Denmark.