The executive vice president of the European Commission in charge of Trade visits China, between Saturday and Tuesday, to ask Beijing for cooperation in the investigation opened by Brussels into supposedly illegal Chinese subsidies in the electric car sector.
Just over a week after the announcement of a European investigation into Chinese state subsidies to manufacturers of electric cars – vehicles that quickly entered the European Union (EU) market and are sold at a much lower price than those of EU competitors, Valdis Dombrovskis will then meet with senior Chinese officials as part of the high-level dialogue between Brussels and Beijing.
According to European sources interviewed by Lusa, this visit, planned “several months ago”, acquires “a new impetus” as it coincides with the announcement of the community investigation into alleged unfair trade practices.
“We will be able to communicate the next steps and send the message that China may be interested in cooperating to be in a better scenario. [na investigação], being able to challenge and present evidence, argue, etc. While, if it does not cooperate, the Commission’s decision will be based on public information, which is traditionally more damaging,” explained the same sources, in a meeting with the European press, including Lusa.
Ensuring that the investigation “fully complies with the standards of the World Health Organization”, these community officials stated that Valdis Dombrovskis’ visit will serve to “listen to interested parties” in cities such as Beijing and Shanghai.
Another European concern that needs to be addressed is the “rapid deterioration of the business environment and the dubious guidelines that [as autoridades chinesas] send to European companies”, with laws such as those relating to data and cybersecurity.
European sources affirm that, on the table, there will continue to be specific commercial and technological concerns of the 27 Member States, in particular with regard to fifth generation networks (5G), when countries such as Portugal admit to having excluded risk providers, like the Chinese manufacturer Huawei.
At the moment there are trade tensions between Brussels and Beijing, since last week the president of the community executive, Ursula von der Leyen, announced the opening of the investigation, after collecting evidence for a year by the institution’s services. .
In her 2023 State of the Union address to the European Parliament’s plenary session in Strasbourg, Ursula von der Leyen noted that “global markets are now flooded with cheaper Chinese electric cars.”
“This is distorting our market and since we do not accept it from within, we do not accept it from outside either, which is why I can announce today that the Commission will launch an investigation into subsidies for electric vehicles from China,” revealed the person responsible.
The day after the investigation was announced, China expressed “serious concerns and strong discontent,” accusing the EU of “a blatant act of protectionism in the name of fair competition.”
According to data from the European Commission, Chinese electric cars, which recently entered the EU, already represent 8% of the total market, being 20% cheaper compared to the European competition.
China, which has emerged as an economic power, has promoted a strong state investment strategy, which the EU questions because it affects competition.
What is at stake are large subsidies for Chinese companies that invest abroad, mainly in strategic sectors.
Source: TSF
