Chinese chamber decries EU’s coercion
Protectionism ‘poses risks for ties, will turn out to be counterproductive’
China’s main business group in the EU has excoriated Brussels for weaponizing its own regulations to engage in economic coercion of Chinese businesses, and the group urged the EU to treat Chinese firms fairly, after the EU launched investigations into Chinese firms in the cleanenergy sector.
The EU’s moves targeting various Chinese businesses in areas such as wind turbines, solar panels and medical devices, based on accusations that these companies had received subsidies, are in effect protectionist moves that aim to protect EU businesses while cracking down on Chinese firms that have a clear competitive edge.
Such moves not only pose serious risks for bilateral economic and trade cooperation, but also will turn out to be counterproductive, Chinese experts said on Tuesday.
In its latest move, the EU had published two summary notices pertaining to the second and third in-depth investigations under the Foreign Subsidies Regulation (FSR), which involved Chinese businesses, according to the China Chamber of Commerce to the EU (CCCEU).
“The chamber restates its firm opposition to the European Commission’s use of the FSR as a means to economically pressure Chinese companies operating in the EU, particularly in the green transition sector, with this new tool,” the CCCEU said in a statement it sent to the Global Times on Tuesday.
In its long statement, the CCCEU raised serious concerns about various aspects of the FSR, including its overly broad and non-exhaustive definition of “foreign financial contributions” and a significant lack of transparency.
“The FSR has been weaponized by the EU side and functions as a form of economic coercion,” the Chinese business group said. It urged all stakeholders to promptly reassess the implementation of the FSR and its adverse effects on the EU’s investment and public procurement sectors. It called on the EU to provide Chinese firms with a fair, just and nondiscriminatory environment.
The EU’s move to target Chinese industries that have gained a competitive edge based on allegations that they received subsidies is baseless, Li Dawei, senior research fellow at the Institute for International Economic Research of the Chinese Academy of Macroeconomic Research, told the Global Times on Tuesday.
“Such a view obviously cannot pass the academic test and is inconsistent with the basic logic of economics. The purpose behind it is a new form of trade protectionism. Its purpose is to protect the development of related industries in the EU,” Li said. “Experience shows that the results of protectionist policies are often counterproductive.”