EV Photo:VCG

China always maintains that trade frictions should be properly handled through dialogue and consultation, the Ministry of Commerce (MOFCOM) said on Thursday, responding to the question on the just-started consultations between China and the EU on the anti-subsidy investigation into Chinese electric vehicles (EVs).

"At present, the working teams of the two sides have maintained close communication and are accelerating the consultation work," He Yadong, a spokesperson for MOFCOM said on Thursday during a routine press briefing.

China has repeatedly expressed serious concerns and firm opposition to the anti-subsidy investigation on China's EVs initiated by the European Commission (EC), He noted.

The remarks were a response to the question of whether the China-EU consultation could follow the solution of the China-EU trade dispute on photovoltaic products dated back to 2013 when minimum import prices and limited import quantity were set.

On Saturday, China and the EU agreed to launch consultations on the anti-subsidy investigation into Chinese electric vehicles (EVs), during a video meeting between Chinese Commerce Minister Wang Wentao and Valdis Dombrovskis executive vice president of the EC.

The essence of China-EU cooperation is complementarity and mutual benefit. There is broad space for cooperation between the two sides in the field of green transformation, said He Yadong.

"We hope that the EU and China can work together to push for positive progress in consultations as soon as possible and reach a solution acceptable to both sides so as to avoid the escalation of trade frictions and negative impact on China-EU economic and trade relations," the spokesperson noted.

Industry observers said that the Chinese side has shown its utmost sincerity in seeking to resolve disputes through consultations. If the EC insists on imposing additional tariffs on Chinese EVs despite China's efforts to conduct friendly consultation, it will inflict material damages on the overall China-EU relations.

On Friday, the MOFCOM stated that the EU side bears full responsibility, as it continuously escalates trade frictions with China, which could trigger a "trade war," in response to media reports of various industries in the EU expressing concerns about the escalating trade tensions might prompting a "trade war."

According to MOFCOM statistics, since the beginning of 2024, the EU has imposed 31 restrictive trade and investment measures on China, 25 of which are trade remedy measures.

On Thursday, He Yadong said that the MOFCOM has received the relevant trade barrier investigation application materials regarding EU's Foreign Subsidies Regulation (FSR) submitted by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) on behalf of the industry.

"We are reviewing the matter in accordance with the law and will release relevant information in a timely manner," He Yadong said.

The CCCME recently said that it will consider protecting its rights through legal channels against discriminatory practices in the investigation of Chinese enterprises under the EU's FSR.

"We are highly concerned about the EU's FSR, which has caused a serious negative impact on Chinese enterprises' exports and investment operations in Europe. We have repeatedly expressed strong dissatisfaction and firm opposition," said He Yadong.

The China Chamber of Commerce to the EU (CCCEU) expressed its strong support for the action by MOFCOM, and is committed to collaborating closely with MOFCOM in conducting the investigation into the EU's practices under the FSR, according to a statement sent from the CCCEU to the Global Times on Thursday.

Since the inception of the EU's FSR, the CCCEU has expressed its serious concerns about the excessive discretionary powers granted to the EC and the overly broad, non-exhaustive definition of "foreign financial contributions." Through various channels and procedures, the CCCEU has repeatedly communicated its position and recommendations to relevant EU legislative and enforcement bodies.

"Chinese companies recently reported that the European side exceeded the scope of the FSR investigation. Despite the opposition of Chinese enterprises, the EU side copied documents containing information about the companies' key technology components, which are classified as commercial secrets. We express strong dissatisfaction and opposition to the European side's alleged improper practice of using investigations to gather intelligence on the advanced technologies of Chinese enterprises. We stand in support of relevant Chinese enterprises in safeguarding their rights and interests through legal means," said the CCCEU.

Global Times