The European Union has recently initiated a series of investigations into various Chinese industries in an effort to protect its home-grown manufacturers. These investigations focus on the procurement of medical devices, subsidies for wind turbines, solar panels, and electric vehicles. The European Commission, responsible for carrying out these probes, aims to address unfair competition and market distortion.
One of the investigations launched by the European Commission targets Chinese public procurement of medical devices. This probe is the first to be conducted under the EU International Procurement Instrument, which aims to prevent countries from unfairly favouring domestic suppliers. If European suppliers are found to lack fair access to the Chinese market, restrictions could be placed on Chinese medical device companies bidding in EU public tenders. The investigation is expected to conclude within nine months, with a possible extension of five additional months.
Another area of investigation by the EU is the subsidies received by Chinese suppliers of wind turbines intended for Europe. The bloc's anti-trust commissioner, Margrethe Vestager, revealed that the probe will delve into wind park development in several European countries. However, specific companies were not named. China has criticized this investigation as “discriminatory” and endorsed protectionism as a response.
The Commission has also opened two investigations under the EU Foreign Subsidies Regulation to examine whether Chinese bidders received excessive subsidies for solar power park projects in Romania. The investigations focus on a consortium involving Romania's ENEVO and a unit of China's LONGi, as well as subsidiaries of the Chinese state-owned Shanghai Electric Group. The Commission has until a certain date to make a decision on whether to block the contract, accept commitments from the companies to eliminate competition distortion, or take no further action.
In September, the Commission announced an upcoming anti-subsidy investigation into Chinese electric vehicles to assess the need for punitive tariffs. The goal is to determine if Chinese EV exports to the EU market benefit from excessive subsidies. Chinese officials have rejected claims of overcapacity in the EV sector and criticized the investigation as being biased against Chinese manufacturers. The official investigation began in October and is expected to last up to 13 months, with the possibility of imposing provisional anti-subsidy duties nine months after the start of the probe.
The European Union's investigations into Chinese practices are a reflection of the ongoing tensions surrounding global trade and competition. These probes serve as a means to safeguard European industries against unfair practices and maintain a level playing field in the international marketplace. The outcomes of these investigations will likely have far-reaching implications for the trade relations between the EU and China.