China’s Ministry of Commerce (MOFCOM) announced on Wednesday the launch of a trade and investment barrier investigation into the European Union’s (EU) practices in its foreign subsidy investigations. The move marks a significant development in the ongoing economic relations between China and the EU.
The investigation was initiated at the request of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. According to MOFCOM, the chamber’s qualifications and request documents have been thoroughly verified, paving the way for the formal commencement of the probe.
Under its foreign subsidies regulation, the EU has conducted preliminary, in-depth, and raid investigations into Chinese companies operating in sectors such as locomotives, photovoltaics, wind power, and security check equipment. These investigations have raised concerns within China about the fairness and transparency of the EU’s practices.
In response, MOFCOM stated that it will examine the EU’s methods in these investigations. The Chinese investigation will involve comprehensive surveys, hearings, and on-site activities to collect information from all stakeholders involved. This approach aims to ensure that the investigation is thorough and considers the perspectives of both Chinese companies and European institutions.
The investigation is scheduled to conclude by January 10, 2025. However, MOFCOM noted that the deadline could be extended to April 10 under special circumstances, allowing for additional time if required to address any complexities that may arise during the process.
This development highlights the intricate nature of international trade relations and the challenges that can emerge when differing regulatory approaches intersect. The outcome of the investigation could have significant implications for businesses and investors engaged in Sino-European trade, particularly in the high-tech and renewable energy sectors.
Stakeholders from both regions will be closely monitoring the progress of the investigation, which underscores the importance of dialogue and cooperation in resolving trade disputes. As China and the EU navigate this issue, the global community watches with interest, understanding that the resolution may set precedents for future international trade practices.
Reference(s):
China launches probe into EU's foreign subsidy investigations
cgtn.com
