China has accused the European Union of protectionism and “reckless distortion” of the definition of subsidies in response to a brand new EU investigation into Chinese wind turbine manufacturers.
A Chinese trade defense official made “solemn statements” on the problem at a gathering in Brussels on Wednesday with Martin Lukas, the EU’s director general for trade defense, the trade ministry said.
“The European side’s reckless distortion of the definition of subsidies and the lack of openness and transparency of procedural standards during the investigation are a protectionist act that harms the fair competitive environment in the name of fair competition,” the statement said.
The investigation launched by the European Union on Tuesday is the most recent against Chinese firms announced under a brand new EU regulation up to now two months.
The investigation will examine whether Chinese subsidies give wind power firms an unfair advantage when competing for projects in five member countries: Spain, Greece, France, Romania and Bulgaria.
“We are making full use of the tools at our disposal,” said EU Competition Commissioner Margrethe Vestager when announcing the move.
A Chinese business group in Europe called the investigations “an act of economic coercion” that undermines the EU’s commitment to reducing greenhouse gas emissions.
“This action sends a damaging signal to the world by suggesting discrimination against Chinese companies and advocating protectionism,” the Chinese Chamber of Commerce to the EU said an announcement.
The EU last week also announced investigations into two Chinese solar panel manufacturers bidding for a 455-megawatt solar park in Romania. A previous EU investigation into the procurement of 20 electric trains in Bulgaria was dropped last month after the Chinese bidder withdrew from the competition.
Vestager, delivery a speech within the United States on technology and policy, described the approach as a “whack-a-mole” and said the EU needed to handle the issue more systematically.
“And we need it before it’s too late,” she said, in line with a text of her prepared remarks. “We cannot afford for what happened with solar panels to happen again with electric vehicles, wind power or critical chips.”
China believes the investigations are “pointing in an obvious direction,” undermining Chinese firms’ confidence in investing and trading in Europe and hurting global efforts to combat climate change. said the statement from the Ministry of Commerce.
Last October, the EU also launched an investigation into Chinese subsidies for electric vehicles as exports from China to Europe increase.
China’s vehicle exports, including trucks and buses, rose 33.2% to 1.3 million units in the primary three months of this yr, the China Association of Automobile Manufacturers said on Wednesday. Electric vehicle exports rose 7.3% to 248,000 units. Of these, 1.1 million were cars.
US Treasury Secretary Janet Yellen, expressed similar concerns on a recent visit to China. She called for changes to China’s industrial strategy, which she said “has the potential to flood our markets with exports that make it harder for American companies to compete.”
A German industry official said low cost Chinese goods contribute to Europe’s environmental goals within the short term but will “destroy our industry” within the medium term.
“We have a dilemma here,” said Maximillian Butek, head of the German Chamber of Commerce in East China. “Because right now it’s solar, maybe the next one could be wind power, etc. So that’s a balance that politicians have to find.”
The chamber wants Chancellor Olaf Scholz to specific German firms’ concerns about access to the Chinese market during his visit to China next week.
Complaints about unfair trade practices are usually not recent, but have gained traction with the emergence of Chinese firms as competitors each in China and abroad.
“Especially against the background of the increased entry of Chinese suppliers into the European market, a level playing field must be created,” said the German Chamber of Commerce in a survey of member firms published this week.
