The Ministry of Commerce Photo: VCG

China’s Ministry of Commerce (MOFCOM) said on Thursday that the EU’s investigations into Chinese enterprises based on the Foreign Subsidies Regulation (FSR) have many unreasonable practices, which have constituted trade and investment barriers, and the ministry will ask the EU to adjust or change relevant practices through bilateral consultations and other measures as appropriate. 

He Yadong, spokesperson from the MOFCOM, made the remarks at a press conference on Thursday afternoon after the MOFCOM announced Thursday morning it has determined that the European Union (EU)'s practices in its foreign subsidy investigations against Chinese enterprises have constituted trade and investment barriers.

He said that at the request of China Chamber of Commerce for Import and Export of Machinery and Electronic Products, the ministry initiated an investigation into trade and investment barriers in relation to the EU’s FSR-related practices on July 10, 2024.

After filing the case, the MOFCOM verified the relevant situation with various stakeholders through questionnaires and field investigations in accordance with the law, gathered extensive opinions, and ensured that the investigation was fair, impartial, and open and transparent, He said.

In the course of the investigation, the European Commission (EC) did not submit the answer sheet and related comments.

He noted that the investigation showed that there were many unreasonable practices in the EC’s FSR investigations of China, which have caused restrictions and obstacles to the entry of Chinese enterprises’ products, services and investments into the EU market, and have harmed the competitiveness of relevant Chinese enterprises and their products in the EU market.

Therefore, the MOFCOM has determined in accordance with the law that the relevant practices of the EU FSR investigations constitute trade and investment barriers. In accordance with the provisions of the Investigation Rules on Foreign Trade Barriers, the MOFCOM will, where appropriate, request the European side to adjust or change the relevant practices through bilateral consultations and other measures. The goal is to ensure an open, fair, just, non-discriminatory, and predictable environment for Chinese enterprises investing and operating in Europe, the spokesperson noted.

Global Times