The Ministry of Commerce Photo: VCG

As the EU continues to escalate trade friction, which may lead to a "trade war," the blame lies squarely with the EU side, a spokesperson from China's Ministry of Commerce (MOFCOM) said on Friday, in response to media reports which claimed that China's anti-dumping probe into certain pork and pig by-products originating from the EU is a countermeasure against the EU's electric vehicle (EV) tariff move against China and various sectors in the EU are worried about escalation of the trade friction with China or a "trade war."

"China is unwilling to see the current trade friction between China and the EU. China has always adhered to the consensus between the leaders of the two sides, and has continuously clarified China's position and demonstrated its openness and cooperation toward the EU institutions and member states through meetings, talks, telephone calls, letters and other means on bilateral occasions as well as multilateral events including the 13th Ministerial Conference of the WTO. China has made clear its demand that the issue be properly resolved through dialogue and consultation," the spokesperson noted.

China has always followed WTO rules and used trade remedy measures with prudence and restraint, the spokesperson said.

But unfortunately, since 2024 alone, the EU has intensively rolled out 31 trade and investment restrictive measures against China, including 25 trade remedies. The EU also initiated investigations against China under the Foreign Subsidies Regulation and International Procurement Instrument, which have seriously interfered with China-EU economic and trade cooperation.

The ministry said that the EU has failed to implement the consensus of the leaders of the two sides. Chinese President Xi Jinping has repeatedly stressed that China and the EU should strengthen strategic communication and enhance understanding and properly handle differences through constructive dialogue. European leaders have also repeatedly expressed their recognition and their hope to strengthen interaction and dialogue with China and develop a more mutually beneficial cooperation.

In the countervailing investigation of the EU, the European side ignored the important consensus reached by the leaders of the two sides, disregarded the objective facts, and disregarded China's repeated and solemn representations, presupposing the results of the investigation and ruling on an inappropriate tariff rate. The EU's action jeopardized the interests of enterprises of the two sides, undermined the overall situation of economic and trade cooperation between China and the EU, and affected the global cooperation in combating climate change, the spokesperson noted.

Cartoon: Carlos Latuff

In addition, the EU failed to comply with WTO rules. Judging from the current feedback from all parties, the European Commission (EC) has launched the anti-subsidy investigation into China's electric vehicles (EVs) on its own without an application from the industries and on the grounds of protecting the local industries. The sufficiency of evidence and the legitimacy of the investigation are in doubt.

During the investigation, the EC predetermined the results with improper use of the countervailing investigation tools. The samples were not taken in accordance with the rules and past practices, said the spokesperson.

The pre-disclosure of the investigation results showed that the EC completely ignored the information provided by the Chinese enterprises, artificially fabricated and exaggerated the so-called subsidy items, and ruled on the high tariff rate in violation of the law. The practices are in serious violation of the WTO principles of openness, fairness, non-discrimination and the spirit of multilateral cooperation.

Moreover, the legitimate rights and interests of related enterprises have not been protected. During the investigation, the EU has intimidated and coerced Chinese companies. It threatened them with the determination of punitively high tariff rates, requiring overly broad information, much of which involves commercially sensitive information and core secrets, in order to pry into the commercial secrets and intellectual property rights of Chinese firms, the MOFCOM noted.

The European side concealed information about EU producers and did not disclose in a timely and complete manner the assessment of damage to the industry in the bloc, squeezing the time for Chinese enterprises to fill in the questionnaire, and eroding the right to know and the right of defense of Chinese companies.

The European side unfairly predetermined the results and selected the sampled enterprises in a target-oriented manner, excluding the enterprises with the largest export volume. It distorted the results of the investigation, ignored the defenses and evidence submitted by the enterprises, and undermined the legitimate business rights and fair competition rights of Chinese enterprises.

"The EU approach is typical of protectionism, and China's determination to safeguard its legitimate interests is unwavering. China hopes that the EU will be consistent with its words and deeds, and implement the consensus reached by the leaders of the two sides, and take into account legitimate concerns of the two sides," the MOFCOM said.

Hopefully, the European side can settle differences with China through dialogues and consultations in accordance with the WTO rules, return to the right track of handling relations in a bid to avoid the escalation and loss of control of trade friction, and jointly promote the stability of China-EU economic and trade cooperation in the long run, the ministry noted.

Global Times