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Dec. 19 — China urges the European Union to collaborate in upholding the consensus established during recent China-EU leader talks, according to a spokesperson from the Ministry of Commerce.
The two sides should work together to oppose protectionism, preserve open markets, and exercise restraint in the use of restrictive trade and economic measures. Such cooperation is essential to fostering a fair, transparent, non-discriminatory, and predictable environment for Chinese companies seeking to engage in trade and investment with Europe, He Yadong explained during a press conference yesterday.
His comments came in response to questions about a recent opinion piece by French President Emmanuel Macron, which highlighted the need for China and the EU to rebalance their economic relationship. Macron warned that without such adjustment, the European side might be forced to adopt protectionist policies.
He emphasized that the core of China-EU economic and trade ties lies in their complementary strengths and mutual benefits. He also noted that cooperation between the two is influenced by differing levels of economic development, varied industrial structures, and shifting market demands.
He pointed out that the EU has ramped up trade restrictions against China, launching 12 trade remedy investigations and three foreign subsidy probes this year. Additionally, European authorities have barred several Chinese firms from participating in public procurement and greenfield investments across member states.
The European Commission has recently intensified investigations into Chinese companies under the Foreign Subsidies Regulation, including thorough scrutiny of CRRC and Nuctech, accompanied by on-site inspections of Chinese digital platforms. He characterized these actions as severe, targeted, and discriminatory, strongly opposing them on China’s behalf.
He explained that these FSR investigations significantly hinder Chinese businesses’ investment and operations in Europe. In January, China’s Ministry of Commerce conducted its own review and concluded that the EU’s FSR investigations serve as trade and investment barriers. The ministry highlighted issues such as insufficient evidence, excessive enforcement, reversed burden of proof, and a lack of procedural transparency.
He added that these problems not only persist but have worsened, particularly with the broad and vague definition of “foreign subsidies,” which exceeds reasonable international standards. Such practices threaten the normal functioning of Chinese companies in Europe and inject uncertainty into China-EU economic relations.
According to a recent report from the China Chamber of Commerce to the EU, about 63% of Chinese firms operating in Europe said their business activities had been directly or indirectly impacted by the FSR. Twelve percent reported direct effects, while 51% indicated that the regulation has damaged their reputation and confidence in the market.
He called on Europe to cease its unfounded suppression of foreign investment, including Chinese enterprises, and to exercise caution when applying the FSR investigation process. China is closely monitoring these developments and will take necessary steps to defend the legitimate rights and interests of its firms.
Regarding ongoing negotiations on tariffs and minimum price schemes for electric vehicles, He stated that discussions are underway. China’s stance remains consistent, and the country is committed to resolving disagreements through dialogue in pursuit of comprehensive industry solutions.
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