China-EU Trade Tensions Escalate over Alleged Unfair Practices

China has launched an investigation into the European Union's trade practices concerning Chinese companies bidding on projects within the bloc. The investigation will focus on sectors such as wind power, photovoltaics, security equipment, and electric trains. This action is part of a broader trade conflict between the two economic powerhouses.


Devdiscourse News Desk | Beijing | Updated: 10-07-2024 16:30 IST | Created: 10-07-2024 16:30 IST
China-EU Trade Tensions Escalate over Alleged Unfair Practices
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China announced an investigation on Wednesday into whether the European Union has adopted unfair trade practices in its probes of Chinese companies bidding on projects within the 27-nation bloc. The move is the latest in a brewing trade war between the two economic giants.

The investigation will scrutinize sectors such as wind power, photovoltaics, security equipment, and electric trains, according to the Chinese Commerce Ministry. The EU recently utilized a new regulation to investigate companies bidding for projects within the bloc, including examining whether Chinese subsidies give wind turbine companies an unfair edge in Spain, Greece, France, Romania, and Bulgaria. In response, China has accused the EU of protectionism and "reckless distortion" of the definition of subsidies.

The Chinese investigation, requested by China's Chamber of Commerce for Import and Export of Machinery and Electronic Products, is expected to be completed before January 10, with the possibility of a three-month extension. This development follows the EU's imposition of provisional tariffs on China-made electric vehicles last week over subsidies. China, in turn, has launched an investigation into European pork exports.

Both the EU and the United States have expressed concerns that affordable Chinese automobiles could dominate their markets and potentially lead to factory layoffs. Chinese auto exports have surged by approximately 30 percent in the first six months of this year.

(Disclaimer: With inputs from agencies.)

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