Chinese business group condemns EU's foreign subsidies regulation

(MENAFN) On Wednesday, the China Chamber of Commerce to the European Union (CCCEU) issued a strong condemnation of the European Union's use of its newly enacted Foreign Subsidies Regulation (FSR), characterizing it as a form of economic coercion. This criticism arises in response to recent actions taken by the European Commission, which has launched two comprehensive investigations targeting Chinese solar companies involved in public procurement for a photovoltaic park project in Romania.

The CCCEU's rebuke underscores growing tensions between China and the EU over trade practices and economic policies. The implementation of the FSR, which aims to address distortions in the internal market caused by foreign subsidies, has raised concerns among Chinese businesses and officials about the potential impact on their operations and competitiveness in the European market.

"To date, the European Commission has launched three FSR in-depth investigations, all targeting Chinese enterprises," the CCCEU noted, voicing serious worries regarding the investigations.

The business group pointed out the broad and ambiguous definitions of key concepts listed under the FSR, stressing that the regulation would place undue burdens on companies, potentially lead to discrimination against foreign enterprises and "distort the level playing field for Chinese enterprises operating in the EU."

The CCCEU has urged the bloc to improve transparency, protect the rights of Chinese companies, and reduce barriers to investment, public procurement and business operation within the EU.

"It is imperative for the EU to establish a legal and market environment that is fair, transparent, and non-discriminatory towards Chinese enterprises," it added.

The Brussels-based CCCEU represents over 1,000 Chinese companies operating across the EU, with chambers in several member states.


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