China slams EU subsidy probes as ‘egregious’ and discriminatory

China’s Ministry of Commerce has expressed strong opposition to recent European Union investigations into Chinese companies and vowed to use necessary means to defend their rights.\n“The European Union has recently launched a series of Foreign Subsidies Regulation (FSR) investigations targeting Chinese enterprises … such actions are egregious, with clear targeting and discriminatory intent,” ministry spokesman He Yadong said during a press conference on Thursday.\nLast week, Brussels launched an in-depth probe into Nuctech, a partially state-owned maker of security inspection products such as airport scanning equipment, following a similar probe in November against state-owned train producer China Railway Rolling Stock Corporation (CRRC) over its bids for light rail trains in Portugal.\nThe spokesman said the probes had seriously undermined Chinese investment and operations in Europe.\nThe ministry concluded in January that the EU’s FSR enforcement constituted a trade and investment barrier, costing Chinese firms an estimated €2.1 billion (US$2.46 billion) in direct and indirect losses.\nProblems identified by the ministry in these EU probes – including insufficient evidence for initiating cases, excessive enforcement, a reversal of the burden of proof, and a lack of procedural transparency in the investigations – have only amplified in recent months, He said.\n\n\nHe urged the EU to use its regulatory tools carefully, adding that the legitimate rights of Chinese companies would be defended.\nAccording to a May report by American law firm Arnold & Porter, which has offices in China and Europe, since the FSR investigations began, three out of four in-depth reviews and all of the ex officio investigations initiated by Brussels have targeted Chinese companies.\nThe report also found that the commission aligns cases with strategic priorities, focusing on sectors such as telecommunications, clean energy, infrastructure and security equipment.\nSeparately, Beijing and Brussels are discussing a settlement regarding EU tariffs on electric vehicles imported from China, He said.\nTechnical negotiations resumed last week, a source told the Post.\nChina remains committed to dialogue and an industry-wide solution, He said, urging Europe to work towards an early resolution.\nThe European Commission is currently considering a proposal from Volkswagen to replace the tariffs with an annual import quota and a minimum import price for its China-made Cupra Tavascan model – a mid-sized electric SUV.\nThe process could take a few months, Volkswagen said in a statement to the Post.\n