Post by account_disabled on Feb 25, 2024 1:42:37 GMT -5
The EU's anti-subsidy probe into China's electric car industry could prompt retaliatory measures from Beijing, senior EU officials have warned, even as the bloc's ministers said the probe was crucial to safeguarding trade rules. “We have to address this issue seriously,” Paolo Gentiloni, EU economic commissioner, told reporters at a two-day meeting of EU finance ministers in Santiago de Compostela, Spain. “I think there is no specific reason to retaliate. [from Beijing]but it is always possible to retaliate.” European Commission President Ursula von der Leyen said on Wednesday that Brussels would investigate Chinese electric vehicles over fears they were "distorting" the EU market, an investigation that could constitute one of the largest trade cases launched given the scale of the market. The months-long investigation, which could lead to higher tariffs on Chinese imports, aims to buy more time for Europe's traditional carmakers to adapt to the green transition, as Chinese battery-powered models threaten to flood the growing market.
The move comes as the EU struggles to find a balance in its broader strategy towards China, with Brussels seeking to treat Beijing as a rival in economic and geopolitical terms, but also as a key trading partner for Job Function Email Database many of its member states. and a critical part. of their green technology supply chains. “We are emboldened and feel that we should not shy away from a fight with them on this issue. “We are quite sure that if there are measures by China, then we will have the strength to respond,” a senior EU official said of the attitude within the EU executive arm. "The biggest concern is what would happen internally if China targeted individual business sectors in individual countries, the official added. European Commission President Ursula von der Leyen announced the investigation during her annual address to EU lawmakers on WednesdayJulien Warnand/EPA-EFE/Shutterstock EU Trade Commissioner Valdis Dombrovskis, who will travel to Beijing next week for previously arranged talks, said the investigation would be "based on facts.
We are just at the beginning of a fact-based investigation in which we will conduct extensive consultations, including with Chinese authorities and industry. We will now follow this well-established process, step by step,” Dombrovskis said. “We welcome global competition because it strengthens our companies. But the competition must be fair. That is why it is essential to collaborate with China on this issue, and I look forward to meeting my Chinese counterparts next week in Beijing,” he added. China's Ministry of Commerce on Thursday called the investigation “a blatant protectionist act that will seriously disrupt and distort the global auto industry and supply chain. . . and will have a negative impact on economic and trade relations between China and the EU.” "China will pay close attention to the EU's protectionist tendencies and follow-up actions, and firmly safeguard the legitimate rights and interests of Chinese companies," he said in a statement.
The move comes as the EU struggles to find a balance in its broader strategy towards China, with Brussels seeking to treat Beijing as a rival in economic and geopolitical terms, but also as a key trading partner for Job Function Email Database many of its member states. and a critical part. of their green technology supply chains. “We are emboldened and feel that we should not shy away from a fight with them on this issue. “We are quite sure that if there are measures by China, then we will have the strength to respond,” a senior EU official said of the attitude within the EU executive arm. "The biggest concern is what would happen internally if China targeted individual business sectors in individual countries, the official added. European Commission President Ursula von der Leyen announced the investigation during her annual address to EU lawmakers on WednesdayJulien Warnand/EPA-EFE/Shutterstock EU Trade Commissioner Valdis Dombrovskis, who will travel to Beijing next week for previously arranged talks, said the investigation would be "based on facts.
We are just at the beginning of a fact-based investigation in which we will conduct extensive consultations, including with Chinese authorities and industry. We will now follow this well-established process, step by step,” Dombrovskis said. “We welcome global competition because it strengthens our companies. But the competition must be fair. That is why it is essential to collaborate with China on this issue, and I look forward to meeting my Chinese counterparts next week in Beijing,” he added. China's Ministry of Commerce on Thursday called the investigation “a blatant protectionist act that will seriously disrupt and distort the global auto industry and supply chain. . . and will have a negative impact on economic and trade relations between China and the EU.” "China will pay close attention to the EU's protectionist tendencies and follow-up actions, and firmly safeguard the legitimate rights and interests of Chinese companies," he said in a statement.