China Probes EU for ‘Trade Barriers’ Amid Rising Tensions

On Wednesday, the Chinese government announced it would investigate whether the European Union’s investigations into Chinese companies act as “trade barriers.”

There is growing concern in the West that jobs and key industries could be jeopardized by low-cost Chinese imports supported by government subsidies. Earlier this year, the EU began scrutinizing China’s state support for its wind turbine and solar panel manufacturers. Additionally, the EU recently concluded an eight-month investigation into subsidies for Chinese electric vehicle (EV) manufacturers, which led to the imposition of additional tariffs on EVs imported from China.

China will now investigate if these EU probes violate their economic treaty and harm trade with the 27 EU member states.

China’s Ministry of Commerce (MOFCOM) will examine several sectors, including rail, photovoltaics, wind power, and security inspection equipment, as stated on their website.

If MOFCOM finds that the EU’s investigations constitute “trade barriers,” it can initiate negotiations with the EU, launch a multilateral dispute resolution process, or take other measures to address the issue, based on rules published by the ministry in 2005.

This announcement follows the recent imposition of provisional additional duties on Chinese-made EV imports into the EU. Ongoing talks between the two sides are expected to continue, and if no agreement is reached, the tariffs will become permanent in November.

Beijing has expressed strong opposition to the EU tariffs, stating it will take “all necessary moves” to protect China’s interests. Last month, China launched an investigation into pork imports from the EU and is also examining European brandy imports.

According to Wednesday’s announcement, MOFCOM’s latest investigation is in response to a June request from a Chinese industry group. The probe is expected to conclude by January 10. During the investigation, the ministry may use methods such as questionnaires, hearings, and on-site inspections.