Farkhund Yousafzai
Beijing, 16 August 2024 (TDI): The China Chamber of Commerce for Import and Export of Machinery and Electronic Products has warned that the EU members’ support of anti-subsidy measures targeting Chinese electric vehicle companies will lead to a loss of investment.
Many EU nations have long hoped that Chinese EV companies would invest and establish factories in Europe. Experts suggest that the European Commission (EC)’s imposition of anti-subsidy duties on Chinese EVs is intended to push the Chinese companies to invest in Europe, thus boosting the bloc’s automotive industry, creating local jobs, and achieving sustainable and green development goals.
However, the CCCME warned that “the reaction from Chinese firms indicates that the EU’s approach has had the opposite effect.”
Before the EU started its anti-subsidy probe into electric vehicles, many Chinese car manufacturers had already begun or planned to invest in or establish operations in Europe.
Since the EC decided to impose temporary anti-subsidy measures on Chinese EVs, the Chinese EV industry has expressed strong opposition to the bloc’s actions. Many Chinese companies have voiced concerns to the chamber regarding the investigation’s results and the possible risks of facing scrutiny under the EU’s FSR in their European investments,” the CCCME said.
Since the beginning of this year, the EU has launched 5 investigations under the FSR into Chinese companies. To date, there have been three in-depth probs, one proactive investigation, and one unannounced raid, with all three in-depth probes forcing Chinese companies to withdraw from bidding projects.
The EU’s multiple probes targeting Chinese companies are clearly discriminatory, potentially violating WTO most-favored-nation and national treatment rules, severely disturbing an environment of fair competition, and bringing major risks and uncertainties to Chinese companies operating in or investing in Europe, the CCCME stressed on Friday.
The CCCME warned that the “subsidy label” identified in the bloc’s anti-subsidy probes over Chinese EVs is expected to become an excuse for future investigations under the FSR into Chinese investors in Europe, raising deep concerns and concern among enterprises.
