At the Munich Security Conference, EU competition chief Margrethe Vestager emphasized the European Union’s commitment to ensuring fair competition, stating, “We are absolutely willing to use our tools to make sure that we get fair competition.” Her remarks came shortly after Brussels announced an unprecedented investigation into CRRC Qingdao Sifang Locomotive, a prominent Chinese train manufacturer, over allegations of foreign subsidy distortions within the EU single market.
This move by Brussels has sparked a debate about the impact of such investigations on the broader China-EU relationship. In recent months, both China and the EU have engaged in intensified dialogues on trade, economic cooperation, climate change, human rights, and foreign policy, aiming to strengthen ties amid global geopolitical tensions and economic slowdowns.
Critics argue that the EU’s investigation into CRRC Qingdao Sifang Locomotive could undermine the positive momentum achieved in bilateral trade cooperation. They express concerns that initiating such probes without presenting solid evidence may harm fair competition and potentially affect the EU’s own economic interests.
While the EU has a responsibility to investigate anti-competitive practices transparently and fairly, some experts question the factual basis of the current probe. The EU cited “sufficient indications that the company has been granted a foreign subsidy that distorts the internal market,” yet has not provided concrete evidence to support these claims.
As the investigation unfolds, stakeholders on both sides are watching closely. Maintaining a balanced and evidence-based approach is essential to ensure that measures intended to protect fair competition do not inadvertently hinder international cooperation and economic growth.
Reference(s):
Brussels' trade tool undermines, not protects, fair competition
cgtn.com
