The Ministry of Commerce Photo: VCG
China's commerce ministry expressed strong opposition on Wednesday to the EU's raid on a Chinese firm, which is part of the bloc's fifth subsidy investigation targeting Chinese businesses since February.
The EU conducted a raid on a Chinese company's offices in Poland and the Netherlands without prior notice on Tuesday morning, aiming to investigate potential industry subsidies.
The Ministry of Commerce (MOFCOM) said that the raid was a blatant violation of fair competition and undermines the confidence of foreign businesses operating in Europe.
China urges the EU to immediately stop and correct its wrong practices, and provide an open and fair environment for businesses investing and operating in Europe, the ministry said.
MOFCOM noted that the EU has recently conducted a series of targeted investigations, abusing the rules and procedures to weaponize their investigation tools. This is protectionist behavior that has distorted the fair competition environment, it said.
China will closely monitor the EU's follow-up actions and take all necessary measures to resolutely defend the legitimate rights and interests of Chinese enterprises, MOFCOM said.
The China Chamber of Commerce to the European Union (CCCEU) said on Tuesday that
it is "extremely shocked and dissatisfied" by the raid.The Brussels-based business group criticized the EU for the "unjustifiable, unannounced raids," pointing out the lack of prior notice or solid evidence to justify such actions. It stressed that "suspicions regarding subsidies can be followed by reasonable means of investigation."
The CCCEU said that the EU's actions send a detrimental message not only to Chinese enterprises but to all non-EU companies operating in the bloc.
The business group also condemned the EU's intention to weaponize the Foreign Subsidies Regulation (FSR) as a tool to suppress lawfully operating Chinese firms in Europe.
Tuesday's raid came after the EU had recently intensified measures directed at Chinese companies involved in wind turbines, solar panels, and medical devices, alleging that they've benefited from state subsidies.
Chinese Foreign Ministry spokesperson Wang Wenbin on Wednesday urged the EU to adhere to the commitments of an open market and fair competition, to comply with WTO rules, and stop cracking down and restricting Chinese companies under various pretexts.