The Chinese government announced on Wednesday that it would launch an investigation into whether the European Union's probes into Chinese companies could be considered as 'trade barriers.' This move comes amidst growing concerns in the West about the impact of cheap Chinese imports supported by government subsidies on jobs and key industries.
Earlier this year, the EU initiated investigations into China's state support for its wind turbine and solar panel suppliers. Additionally, an eight-month-long probe into Beijing's backing of electric vehicle manufacturers led to the imposition of extra tariffs on EVs imported from China.
The Ministry of Commerce (MOFCOM) of China will conduct the investigation, focusing on various sectors such as rail, photovoltaics, wind power, and security inspection equipment. If the EU's probes are deemed to constitute 'trade barriers,' MOFCOM has the authority to engage in negotiations with the EU, initiate a multilateral dispute resolution process, or take other appropriate measures as outlined in its 2005 rules.
Following the recent enforcement of provisional additional duties on Chinese-made EV imports into the EU, discussions between the two parties are ongoing. Failure to reach an agreement could result in the tariffs becoming definitive in November.
Beijing has strongly opposed the EU tariffs, vowing to take all necessary actions to protect China's interests. In response to the EU's actions, China has launched investigations into pork imports from the bloc and European brandy imports.
The latest investigation by MOFCOM was initiated in response to a request by an industry group in China and is expected to conclude by January 10. The ministry will employ various methods such as questionnaires, hearings, and on-site checks throughout the investigative process.
