On Thursday 9 January, the Chinese Ministry of Commerce concluded that the European regulation against unfair foreign subsidies (FSR) constituted an obstacle to trade and investment. Its judgement is based on the results of an investigation opened in July 2024 (see EUROPE 13450/23). Since the regulation was implemented, no fewer than four Chinese companies or groups have been targeted by Commission investigations. However, no restrictive decision has yet been taken against them.
The Commission has adopted a “selective behaviour” in applying the FSR, which constitutes de facto “discrimination” and results in “more unfavourable treatment for Chinese products”, concludes the investigation.
At this stage, China has not yet announced any measures in response to the EU.
The Chinese Ministry of Commerce is also accusing the European Commission of failing to cooperate fully with the investigation by not sending certain requested information (such as a list of investigations carried out under the FSR, with details thereof).
When questioned on this point, the Commission indicated that it had no specific information to share. The Commission’s departments are generally “very open to discussions with the authorities”, according to Lea Zuber, the Commission’s spokesperson on this subject.
EU-China trade relations deteriorated throughout 2024, which ended with the imposition of countervailing duties on Chinese electric vehicles (see EUROPE 13514/2), several anti-subsidy investigations by China into European products, and complaints to the World Trade Organization (WTO) by both sides. (Original version in French by Léa Marchal)