China has sufficient tools to deal with EU’s incessant anti-subsidy probes: social media influencer

Workers complete assembling an electric vehicle (EV) at China's EV start-up Leapmotor in Jinhua, East China's Zhejiang Province on April 1, 2024. The smart EV factory delivered 14,567 new vehicles in March, a yearly increase of 136 percent. Photo: VCG

Workers complete assembling an electric vehicle (EV) at China’s EV start-up Leapmotor in Jinhua, East China’s Zhejiang Province on April 1, 2024. The smart EV factory delivered 14,567 new vehicles in March, a yearly increase of 136 percent. Photo: VCG

Facing incessant anti-subsidy probes against Chinese companies, China actually has sufficient countermeasures, and, if Europe stubbornly continues to take action, China may have to take a series of measures to hit back, Yuyuan Tantian, a social media influencer affiliated with state broadcaster CCTV said in a penned article on Saturday.

The remarks came after two Chinese companies were forced to withdraw from a public procurement bid in a Romanian photovoltaic park project due to the EU’s anti-subsidy investigations. The complexity of the evidence collection required, and the insufficient time provided by the EU led to their withdrawal.

This has been the third investigation under EU’s Foreign Subsidies Regulation (FSR) since its launch last July, all targeting Chinese companies. It comes as certain politicians within the bloc raised so-called concerns regarding “overcapacity” in Chinese emerging industry including electric vehicles (EV).

The EU’s actions and hypes do not align with the interests of EU members, Yuyuan Tantian wrote. 

Some European countries, such as Germany, have expressed opposition to high tariffs on Chinese EVs, stating that EVs from China would drive the innovation of German automobile industry.

Moreover, the EU itself has been providing substantial subsidies in various sectors, including new-energy industries and the agricultural sector.

In response to EU politicians’ efforts to suppress Chinese companies, China has prepared sufficient countermeasures, Yuyuan Tantian wrote in the article.

Shen Qian, a lawyer familiar with trade and commerce issues, told Tanyuan Tantian said that the EU is highly dependent on the Chinese market for exports including wine and dairy, and the EU offered huge subsidy to its agriculture industry. 

Shen said that the EU’s subsidy as well as dumping practices has caused substantial harm to related industries in China, so it is necessary for China to demonstrate its determination to protect the interests of Chinese companies too.

Last September, the Chinese Ministry of Commerce announced an anti-subsidy ruling on imported potato starch from the EU and decided to keep in place the anti-subsidy tariffs. 

In addition to agricultural products, the EU also relies on the Chinese market in many other sectors such as aviation. Airbus recently released a report predicting that China is expected to surpass the US and Europe to become the world’s largest aviation market.

“Some EU politicians’ attempts to suppress China are undoubtedly shooting themselves in the foot,” Yuyuan Tantian wrote.