EU anti-subsidy investigation backfires, triggering investment concerns among Chinese companies
2024-08-19
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China.com, August 16 (Reporter Yang Jia) It is expected that the European Commission will disclose the final ruling on the anti-subsidy investigation against Chinese electric vehicles before the end of August 2024, and make a final ruling before November 4. On the 16th, Shi Yonghong, Vice President of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (hereinafter referred to as "China Chamber of Commerce for Machinery and Electronic Products"), introduced the relevant situation to reporters and responded to the concerns of all sectors of society.
An opaque and non-objective “investigation” will backfire
Shi Yonghong believes that many of the findings in the preliminary ruling of the European Commission on anti-subsidy investigations against Chinese electric vehicles issued in July lack objectivity and fairness, and some procedures lack transparency. He said that the unreasonable findings of the European Commission's preliminary ruling seriously violated the relevant rules of the WTO and the EU on anti-subsidy, and artificially manipulated Chinese companies to label them as "subsidies."
It is understood that the China Chamber of Machinery and Electrical Equipment has been authorized by 12 major Chinese electric vehicle companies (including 3 Chinese sampling companies) to participate in the damage investigation procedure as an interested party.
Shi Yonghong said that China's electric vehicle industry has repeatedly expressed strong opposition to the EU's practices. Many Chinese electric vehicle companies have expressed to the China Machinery and Electrical Chamber of Commerce their concerns about the results of the investigation and their great worries about the risks of investing in Europe, such as possible investigations under the EU Foreign Subsidies Regulation.
Some analysts believe that the European Commission's imposition of anti-subsidy duties on Chinese electric vehicles is intended to hinder the export of Chinese electric vehicle products to Europe in the hope of promoting Chinese companies to invest in Europe, drive the development of the EU's automotive industry, increase local employment opportunities in the EU, and achieve green and sustainable development goals.
In this regard, Shi Yonghong said that before the EU launched the anti-subsidy investigation on electric vehicles, many Chinese automakers had already started or planned to invest or operate in Europe, but since the European Commission decided to impose temporary anti-subsidy duties, the Chinese electric vehicle industry has repeatedly expressed strong opposition to the EU's actions. He said that judging from the reactions of Chinese companies, the EU's actions will backfire.
Frequent investigations into Chinese companies cause concern
The EU Foreign Subsidies Regulation came into effect on July 12, 2023, and on October 4 of the same year, it launched an anti-subsidy investigation against Chinese electric vehicles.
Since the beginning of this year, the EU has frequently launched Foreign Subsidies Regulation investigations against Chinese companies. So far, it has launched three in-depth investigations, one proactive investigation and one surprise inspection against Chinese companies. Three of the in-depth investigations forced Chinese companies to withdraw from bidding projects.
Shi Yonghong said that the EU has launched a number of investigations into the EU Foreign Subsidies Regulation against Chinese companies. The targets are clear and discriminatory in nature. They are suspected of violating relevant WTO rules such as most-favored-nation treatment and national treatment, and have seriously distorted the fair competition environment. This has brought great risks and uncertainties to Chinese companies' operations and investments in Europe.
Shi Yonghong also said that the "subsidy label" identified by the EU in the anti-subsidy investigation may very likely become an excuse for the EU to conduct an investigation into the EU Foreign Subsidies Regulation against Chinese companies investing in Europe in the future, causing deep concern and worry among companies.
Shi Yonghong stressed that the China-EU automotive industry chain is interdependent and has broad prospects for cooperation. He hopes that the EU will uphold an open and cooperative attitude, terminate the investigation as soon as possible, support the China-EU automotive industry to carry out comprehensive cooperation, and work together to promote the healthy development of the global electric vehicle industry chain, respond to global climate change, and achieve carbon neutrality goals.
Chinese electric vehicle entrepreneurs are closely following the progress and results of the EU's anti-subsidy investigation, and will assess the risks of investing in Europe and make investment decisions based on it.
