China’s Ministry of Commerce (MOFCOM) announced on Wednesday the initiation of a trade and investment barrier investigation into the European Union’s (EU) foreign subsidy practices. The move comes amid growing concerns over the EU’s investigations into Chinese companies operating in key sectors such as locomotives, photovoltaics, wind power, and security check equipment.
According to a statement from MOFCOM, the investigation was launched at the request of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. The chamber’s qualifications and request documents have been verified by the ministry, underscoring the seriousness of the concerns raised by Chinese industries.
Under its foreign subsidies regulation, the EU has been conducting preliminary, in-depth, and surprise investigations into Chinese enterprises. These practices have prompted MOFCOM to examine whether the EU’s actions constitute trade and investment barriers that unfairly target Chinese businesses.
The ministry emphasized that the investigation will be thorough and transparent, involving surveys, hearings, and on-site activities to gather information from all stakeholders. This approach aims to ensure a comprehensive understanding of the EU’s practices and their impact on trade relations.
The investigation is scheduled to conclude by January 10, 2025. However, MOFCOM noted that the deadline could be extended to April 10, 2025, under special circumstances, allowing ample time to address the complexities of the issue.
This development highlights the evolving dynamics of trade between China and the EU, two of the world’s largest economies. It reflects ongoing efforts to address concerns over fair trade practices and the balance of economic interests.
Businesses and investors will be closely monitoring the investigation’s progress, given its potential implications for international trade and investment. Analysts suggest that the outcome could influence future policies and regulations affecting cross-border commerce.
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China launches probe into EU's foreign subsidy investigations
cgtn.com
