Hey there, global news enthusiasts! 🌍 China is raising eyebrows after its Ministry of Commerce declared that the European Union's (EU) foreign subsidy investigations are creating trade and investment barriers. 🚧
Here's the scoop: Following a six-month probe initiated by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, China found that the EU's actions might not be playing fair. 🎯
Under its foreign subsidies regulation, the EU has been digging deep into Chinese companies in sectors like locomotives, solar power (hello, photovoltaics ☀️), wind energy 🌬️, and security equipment. But according to China's Ministry of Commerce, these investigations are bending some World Trade Organization (WTO) rules, especially those about non-discrimination. 🤔
Chinese stakeholders feel the EU's probes come with unfair penalties, tight deadlines, and a lack of transparency. The regulations seem to be \"selectively enforced,\" with vague criteria on what counts as foreign subsidies. Talk about moving the goalposts! 🎯
The probe also showed that the investigations are super broad, putting a massive burden on companies. Key concepts like \"market distortion\" are being defined in ways that seem, well, kinda subjective and arbitrary. 😕
Why does this matter? These investigations could hurt trade between China and the EU, making it harder for Chinese products, services, and investments to enter the European market. That's bad news for competition and could lead to higher prices for everyone. 💸
Chinese companies have already felt the sting, with significant economic losses. We're talking about 7.6 billion yuan (around $1.06 billion) in abandoned projects, and more than 8 billion yuan in other affected projects. Ouch! 💔
The Ministry also pointed out that these actions could backfire on the EU, leading to higher costs, pricier goods for consumers, and even job losses. Not exactly a win-win scenario. 🙅♂️
During the probe, the European Commission didn't submit any completed questionnaires or offer comments, said He Yadong, the Ministry spokesperson. China is now urging the EU to rethink its approach to ensure a fair and predictable environment for businesses. Let's hope cooler heads prevail! 🤝
Reference(s):
China says EU's foreign subsidy probes trade and investment barriers
cgtn.com
