Smith urges fight against unfair Chinese trade practices
- China found that the European Union's recent trade regulations impose unfair barriers on its firms.
- The European Commission maintains that the Foreign Subsidies Regulation is compliant with international trade laws.
- Ongoing trade tensions are greater than before, affecting Chinese companies and potentially disrupting future cooperation.
On Thursday, January 8, 2025, China announced the results of an investigation that accused the European Union of implementing unjust trade and investment barriers against Chinese companies. This announcement came amid ongoing trade tensions between the two economic powers. The Chinese commerce ministry stated that the EU's Foreign Subsidies Regulation (FSR) discriminated against Chinese firms, claiming it created significant trade barriers. The European Commission defended the FSR, arguing its compliance with EU and World Trade Organization rules. This dispute is part of a broader struggle, as the EU seeks to limit its reliance on Chinese technology while promoting renewable energy projects, which have included challenging subsidies from Beijing. As a consequence, Chinese firms have reported losses exceeding $2.05 billion, leading to a curtailment of their projects within the EU. The rising tensions also result in many multinationals reassessing their operations in China, considering the impact of governance rules dominated by national security concerns. China remains resolute in protecting its interests but has not yet indicated any specific actions toward the EU in response to these developments.