Beijing blasts EU over trade restrictions

The Chinese Ministry of Commerce has accused Brussels of selectively enforcing its regulation governing foreign subsidies

Beijing has accused the EU of imposing unfair trade barriers on Chinese companies in the latest rift in commercial relations between the two economic heavyweights.

In a statement issued on Thursday, the Chinese Commerce Ministry said the practices adopted by the bloc in its foreign subsidy investigations against Chinese enterprises constitute trade and investment barriers.

It follows an investigation ordered by Beijing in July last year, coming in response to Brussels’ probes into whether Chinese government subsidies for electric vehicles (EV) producers were undermining EU competition. 

The ministry’s findings highlighted “selective enforcement” of the EU’s Foreign Subsidies Regulation as a major concern, adding that the criteria set by EU lawmakers for determining foreign subsidies is “quasi-ambiguous.” The investigative process “imposes a heavy burden on Chinese enterprises,” as they are obliged to provide a large amount of information.

The investigative procedure “is not open and transparent” and contributes to uncertainty surrounding the participation of companies targeted by the probes. At the same time, enterprises are threatened with fines if they refuse to cooperate, according to the ministry.

READ MORE: China files WTO lawsuit against EU

In October 2023, the European Commission launched an anti-subsidy investigation into imports of passenger battery electric vehicles (BEVs) from China. A year later, the bloc’s executive branch raised import duties on these vehicles to over 45%.

In retaliation, Beijing imposed provisional tariffs on EU-origin brandy and threatened higher tariffs on fuel-powered cars with large-displacement engines. Chinese authorities have also filed a lawsuit with the World Trade Organization (WTO) over alleged “trade protectionism” adopted by Brussels.