The European Union has recently taken steps to investigate various aspects of China’s trade practices, particularly in the areas of medical devices, wind turbines, solar panels, and electric vehicles. These investigations are aimed at protecting European manufacturers from unfair competition and market distortion. Let’s delve into the details of each investigation and what they entail.
The European Commission launched a probe into Chinese public procurement of medical devices, with the aim of preventing countries from unfairly favoring domestic suppliers. If it is found that European suppliers do not have fair access to the Chinese market, restrictions could be placed on Chinese medical device companies bidding in EU public tenders. The investigation is set to be concluded within nine months, with the possibility of an extension by a further five months.
The EU is also looking into subsidies received by Chinese suppliers of wind turbines destined for Europe. This investigation will focus on wind park development in several European countries, including Spain, Greece, France, Romania, and Bulgaria. China has expressed concerns about the probe being discriminatory and endorsing protectionism.
In addition, the Commission has opened two investigations under the EU Foreign Subsidies Regulation into whether Chinese bidders received excessive subsidies in their offers for a solar power park in Romania. The investigations involve a consortium composed of Romanian and Chinese companies, as well as subsidiaries of a Chinese state-owned group. The Commission has a deadline of August 14 to make a decision on the matter.
Furthermore, the Commission has announced an anti-subsidy investigation into Chinese electric vehicles to determine whether punitive tariffs should be imposed on them. The investigation will assess whether Chinese exports of EVs to the EU market are benefitting from excessive subsidies. This investigation, which officially started on October 4, is expected to last up to 13 months, with the possibility of provisional anti-subsidy duties being imposed nine months after the probe begins.
The European Union’s investigations into Chinese trade practices reflect a broader effort to ensure fair competition and market conditions within the EU. These probes are essential for safeguarding the interests of European manufacturers and preventing any distortions in the market. It remains to be seen what the outcomes of these investigations will be and how they will impact the trade relations between the EU and China in the future.