China had promised retaliation against the European Union, which this month raised tariffs on Chinese electric cars, and is now taking action. Beijing announced on Wednesday, July 10, that it had opened an investigation into the EU for unfair trade practices.
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This is a new episode in the battle of investigations between China and the European Union (EU). China’s Commerce Ministry has given itself at least until next January to investigate obstacles placed by the EU against investment and trade by Chinese companies, it said in a statement released on Wednesday (July 10).
The aim: to determine whether the procedures launched by Brussels against Chinese companies constitute ” trade barriers “No complaint to the World Trade Organization (WTO) for the moment, but China has already been investigating French cognac since the beginning of the year, as well as European pork.
For its part, the EU – the second largest trading partner of China after the United States – has also opened investigations this year targeting Chinese companies suspected of distorting competition. Investigations have focused in particular on Chinese subsidies granted to a train manufacturer and to manufacturers of photovoltaic panels and wind turbines.
Tariffs on Chinese electric cars
But what has angered Beijing above all is additional customs duties applied Since last week, the European Union has imposed up to 38% more customs duties on Chinese electric cars, a decision that could become final in November.
Brussels believes that China is distorting the market by selling its products at very low prices, which penalises European manufacturers and harms their competitiveness. However, German carmakers, which export particularly to China, fear possible more muscular retaliation from Beijing in the future.
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