European Union’s commitment to reduce greenhouse emissions and transition to clean energy has come under scrutiny as China accused it of protectionism and \u201creckless distortion\u201d, questioning its latest investigation into green industry subsidies that Beijing has been offering to companies competing in the European market.<\/p>\n\n\n\n
The new EU investigation is directed at Chinese wind turbine makers competing in five European countries: Spain, Greece, France, Romania and Bulgaria.<\/p>\n\n\n\n
A Chinese trade remedies official made \u201csolemn representations\u201d on the issue in a meeting in Brussels on Wednesday with Martin Lukas, the EU director general for trade defense, the Commerce Ministry said.<\/p>\n\n\n\n
\u201cThe European side\u2019s reckless distortion of the definition of subsidies, and the lack of openness and transparency in procedural standards during the investigation, is a protectionist act that harms the fair competition environment in the name of fair competition,\u201d the statement said.<\/p>\n\n\n\n
The investigation opened by the European Union on Tuesday is the latest against Chinese companies announced in the past two months under a new EU regulation.<\/p>\n\n\n\n
The investigation will look into whether Chinese subsidies are giving wind turbine companies an unfair advantage in the competition for Spain, Greece, France, Romania and Bulgaria.<\/p>\n\n\n\n
\u201cWe\u2019re making full use of the tools that we have,\u201d the EU commissioner for competition, Margrethe Vestager, said in announcing the move.<\/p>\n\n\n\n
A Chinese business group in Europe described the investigations as \u201can act of economic coercion\u201d that undermines the EU\u2019s commitment to reducing greenhouse gas emissions.<\/p>\n\n\n\n
\u201cThis action sends a detrimental signal to the world, suggesting discrimination against Chinese enterprises and endorsing protectionism,\u201d the China Chamber of Commerce to the EU said in a statement.<\/p>\n\n\n\n
The EU also announced investigations last week into two Chinese solar panel makers bidding for a 455-megawatt solar park in Romania. An earlier EU probe into the procurement of 20 electric trains in Bulgaria was dropped last month after the Chinese bidder withdrew from the competition.<\/p>\n\n\n\n
Vestager, delivering a speech in the United States on technology and politics, called the approach \u201cwhack-a-mole\u201d and said the EU needs to address the issue systematically and transparently.<\/p>\n\n\n\n
\u201cAnd we need it before it is too late,\u201d she said, according to a text of her prepared remarks. \u201cWe can\u2019t afford to see what happened on solar panels, happening again on electric vehicles, wind or essential chips.\u201d<\/p>\n\n\n\n
China thinks the investigations are \u201ctargeting an obvious direction,\u201d undermining the confidence of Chinese companies to invest and trade in Europe and affecting global efforts to combat climate change. the Commerce Minist ry statement said.<\/p>\n\n\n\n
The EU also launched an investigation last October into Chinese subsidies for electric vehicles as exports from China to Europe rise.<\/p>\n\n\n\n
China’s vehicle exports, including trucks and buses, rose 33.2% in the first three months of this year to 1.3 million units, the China Association of Automobile Manufacturers said Wednesday. Exports of electric vehicles were up 7.3 percent to 248,000 units. Passenger cars accounted for 1.1 million of the total.<\/p>\n\n\n\n
The U.S. treasury secretary, Janet Yellen, raised similar concerns on a recent visit to China. She called for changes in a Chinese industrial strategy that she said has \u201cthe potential to flood our markets with exports that make it difficult for American firms to compete.\u201d<\/p>\n\n\n\n
A German industry representative said that inexpensive Chinese goods contribute to Europe’s environmental goals in the short-term but \u201cwill destroy our industry\u201d in the medium term.<\/p>\n\n\n\n
\u201cWe have a dilemma here,\u201d said Maximillian Butek, the head of the German Chamber of Commerce in East China. \u201cBecause now at the moment it\u2019s solar, the next could be maybe wind power, etc. So this is a balance the politicians need to find.\u201d<\/p>\n\n\n\n
The chamber wants German Chancellor Olaf Scholz, on his visit to China next week, to raise German company concerns about access to the Chinese market.<\/p>\n\n\n\n
Complaints about unfair trade practices are not new, but they have taken on increased importance with the emergence of Chinese companies as competitors both in China and abroad.<\/p>\n\n\n\n
\u201cEspecially against the background of increased entry of Chinese providers into the European market, a level playing field must be imple mented,\u201d the German Chamber said in a survey of member companies released this week.<\/p>\n\n\n\n
Source: TRTWorld and AGENCIES<\/p>","protected":false},"excerpt":{"rendered":"
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