China Says EU’s Foreign Subsidies Law Amounts to Trade Barrier

Beijing: So, China is really not happy with the EU right now. They just said that the EU’s new rules to protect local businesses from foreign subsidies are basically a trade barrier. This is just the latest round in their ongoing trade spat.

The Chinese Ministry of Commerce released a report saying they found some serious issues with how the EU is handling things. They kicked off this investigation last July after the EU started looking into subsidies for Chinese electric vehicles. They’re calling out what they see as “selective implementation” of these rules.

Now, China hasn’t said what they plan to do next. But they did mention that if they find these foreign policies are trade barriers, they might have talks, go for a multilateral dispute resolution, or even consider some “retaliatory measures.” Sounds serious, right?

This whole situation is part of a bigger trade fight. Just last October, the EU slapped tariffs of up to 45% on Chinese electric vehicles, claiming that state subsidies were giving China an unfair edge in the market.

China pointed out that the EU seems to be targeting Chinese companies more than others. They’re saying that Chinese products are facing tougher scrutiny when trying to export to the EU compared to products from other countries.

The EU’s regulations are meant to level the playing field for businesses in its 27 member states. They can check out subsidies that might mess with the European market and even impose fines or block state takeovers if needed.

Interestingly, the EU has already used these rules to investigate a Chinese train manufacturer that wanted to sell trains in Bulgaria, which made them back out. They also raided the offices of a Chinese security firm in Poland and the Netherlands last year.