EU Investigations: Probing Chinese Subsidies and Imports – What You Need to Know
The European Union has initiated a series of investigations into various aspects of China’s economic activities, highlighting concerns about unfair competition and market distortions. Here’s an overview of the ongoing probes:
Medical Devices Investigation: The European Commission launched an investigation into Chinese procurement practices regarding medical devices, marking the first utilization of the EU International Procurement Instrument. This move aims to ensure that domestic suppliers in the EU are not unfairly disadvantaged. If European suppliers are found to lack fair access to the Chinese market, restrictions could be imposed on Chinese medical device companies participating in EU public tenders. The investigation is expected to be concluded within nine months, with the possibility of an extension.
Wind Turbines Investigation: Another probe targets subsidies received by Chinese suppliers of wind turbines intended for the European market. The EU’s anti-trust commissioner, Margrethe Vestager, announced the investigation, which will examine wind park development in several EU countries. China has criticized the probe as discriminatory and reflective of protectionist tendencies.
Solar Panels Investigation: Under the EU Foreign Subsidies Regulation, the Commission has opened investigations into alleged excessive subsidies benefiting two Chinese bidders involved in a public tender for a solar power park in Romania. The decision to block the contract, accept company commitments to address competition concerns, or take no action is expected by August 14th.
Electric Vehicles Investigation: The EU initiated an anti-subsidy investigation into Chinese electric vehicles to assess whether they benefit from excessive subsidies in the EU market. Chinese officials have pushed back against claims of overcapacity and criticized the investigation as biased against Chinese manufacturers. The investigation, launched in October, is set to last up to 13 months, with provisional anti-subsidy duties possible nine months after its commencement.
These investigations underscore the EU’s commitment to safeguarding fair competition and addressing concerns about market distortions arising from external subsidies and procurement practices. The outcomes of these probes will likely have significant implications for trade relations between the EU and China.
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