China EU relations

The China Chamber of Commerce to the EU (CCCEU) raised deep concerns regarding the European Commission's selective transparency and potential discriminatory application of the Foreign Subsidies Regulation (FSR) against Chinese products.

The CCCEU submitted a comprehensive response on Tuesday to the EC's recent initiation of in-depth FSR investigations into Chinese companies that participated in a solar photovoltaic project tender in Romania, according to a statement released by CCCEU.

The rebuttal voiced a range of concerns about various shortcomings in the EC's actions and its potential ramifications for Chinese businesses operating in the European market.

The chamber noted the heightened scrutiny imposed on Chinese companies compared to those subjected to non-EU entities in the same tender process. "This selective enforcement of the FSR raises serious questions about the fairness, objectivity, and consistency of the Commission's approach," the chamber said.

On April 3, the EC launched two in-depth FSR investigations on two bidders involved in the tender process for Romania's 110MW solar photovoltaic park project. Afterward, the commission conducted a raid on a Chinese company's offices in Poland and the Netherlands without prior notice on April 23, following another probe targeting Chinese wind turbines which began on April 9.

The FSR has increased uncertainties for Chinese bidders, causing concern about the EU's growing protectionism and misapplication of policy tools, the chamber noted in the statement, urging the European Union to ensure Chinese enterprises' operations in Europe in "a fair, transparent, and non-discriminatory environment."

Since the end of 2023, the bloc has launched a series of subsidy investigations targeting Chinese businesses in emerging sectors such as electric vehicles, solar panels, and wind turbines, which has been labeled by China's Ministry of Commerce as protectionist behavior that distorts fair competition. 

Top executives at BMW and Volkswagen on Wednesday warned against imposing EU import duties on electric vehicles made by Chinese automakers, saying it could upend the bloc's Green Deal plan and harm automakers that import cars made in China. The comments were in response to the bloc's probe launched in October into Chinese automakers for alleged subsidies and extra tariffs, Reuters reported.

In Thursday's statement, the Chamber also contended that the EC has not provided sufficient justification or interpretation of "foreign subsidies" under the FSR, and expressed concern about the burden placed on Chinese companies by the broad information requests and the potential disclosure of sensitive business data.

The chamber's observations follow the recent publication of EU summary notices, inviting stakeholders' feedback. Throughout the legislative and implementation process of the FSR, the chamber has been actively involved, stressing the importance of legality, transparency, and non-discriminatory application.

Global Times