In the early morning of April 24, Beijing time, the Chinese Chamber of Commerce in the European Union disclosed that the offices of a Chinese company in Poland and the Netherlands were suddenly "raided and inspected without notice" by the EU on the morning of the 23rd local time, and expressed "solemn concern" to the European Commission. The raids, also known as "dawn raids," are the first time that the European Commission has publicly confirmed that such inspections are being carried out on a company under the Foreign Subsidies Regulation (FSR), according to Euronews.
According to the daily news released by the European Commission on the 23rd, it is conducting a surprise inspection of a company engaged in the production and sale of safety equipment in the European Union. The EU executive body claimed that there were "indications" that the inspected company may have received foreign subsidies that could distort the internal market under the FSR. According to the source, the Commission officials were accompanied by their counterparts from the national competition authorities of the member states. Euronews Channel said on the 23rd that because the investigation is still in the preliminary stage, the European Commission did not disclose the name of the company or the countries involved. At 1:29 a.m. Beijing time on the 24th, the European Union-China Chamber of Commerce issued a statement on its WeChat public account, saying that it understood that it was Chinese companies that were affected.
Screenshot of the WeChat public account of the Chinese Chamber of Commerce in the European Union
According to the statement, on April 23, the offices of a Chinese company in Poland and the Netherlands were suddenly investigated by the European side for subsidies that were not notified. According to the chamber, the European Commission's authorized law enforcement agencies visited the company's offices in both countries in the morning without prior notice, took control of the company's information equipment and employees' mobile phones, checked office documents and requested relevant data. Hong Kong's "South China Morning Post" quoted sources on the 23rd as saying that the company is engaged in the manufacture of monitoring equipment.
"The Chinese Chamber of Commerce in the EU is seriously concerned about the failure of the European Commission and relevant parties to notify and inspect the conduct of Chinese companies set up in the EU. The statement read, "The Chinese Chamber of Commerce in the EU and the majority of Chinese enterprises in Europe expressed shock and dissatisfaction with the incident that occurred on the 23rd. ”
The Chamber believes that suspicions about subsidies can be raised through reasonable investigative means, and that the Commission's failure to notify raids sends a negative signal not only to Chinese companies, but also to all non-EU companies operating in Europe. In this regard, the Chamber urged the EU side not to abuse the FSR investigation tool, effectively protect the legitimate rights and interests of foreign enterprises in the EU, and provide a truly fair and non-discriminatory business environment for non-EU enterprises.
It is worth mentioning that in the past two months, the EU has opened four related investigations under the framework of the FSR, all of which are aimed at Chinese companies, involving solar energy, wind turbines and electric trains, all of which are related to China's new energy. The EU-China Chamber of Commerce pointed out that the unannounced raid on the 23rd, in the name of foreign subsidies, highlighted the serious challenges faced by foreign companies in the EU's business environment.
Channel Euronews noted that this is the first time since the FSR came into force in July last year that the European Commission has publicly confirmed the new means of "surprise inspections" of a company under the new regulations. This type of raid on a business is also known in English as a "dawn raid" (which is also the use of the English version of the statement of the Chinese Chamber of Commerce in the EU) because the search unit often conducts such searches in the morning (e.g. 9 a.m. or earlier) without prior notice or notice.
A spokesman for the Commission said it was not yet possible to say whether the raid was the result of a complaint, and that the Commission had the power to initiate an investigation on its own initiative. The Commission statement said that conducting such inspections does not mean that the companies in question have indeed received "distorting foreign subsidies" and do not presage the results of the investigation. "If sufficient evidence is found, the Commission will conduct an in-depth investigation. If not, the name of the company in question and the member states involved, are disclosed. ”
At present, the European Commission continues to "play its cards" against China. According to the analysis of the South China Morning Post on the 23rd, the rapid deployment of the European Union's FSR marks that Brussels' use of the economic weapons at its disposal is escalating. Also on the 24th, the European Commission is expected to announce the first use of the "International Procurement Tool" (IPI) to investigate the public tenders of European companies in China's medical device industry. The IPI-related bill was passed back in June 2022, but this is the first time it has been used passively.
In response to the EU's investigation into foreign subsidies to China, the main person in charge of the Trade Remedy Bureau of the Ministry of Commerce lodged solemn representations with the European side on the 10th of this month. The Chinese side believes that the FSR surveys launched by the EU so far are all aimed at Chinese new energy-related enterprises, which will not only seriously damage the confidence of Chinese enterprises in carrying out investment and trade cooperation in Europe, interfere with the mutually beneficial cooperation between China and the EU, but also affect the global efforts to combat climate change and the process of green transformation. In the course of the investigation, the EU wantonly distorted the definition of subsidies, and the procedural standards were not open and transparent, which is a protectionist act that harms the level playing field in the name of fair competition. China expresses strong dissatisfaction and resolute opposition to this, and urges the EU to immediately stop and correct its erroneous practices.
He Yadong, spokesman for the Ministry of Commerce, stressed at a regular press conference on April 11 that China's wind power and other new energy enterprises have achieved rapid development, won competitive advantages and are in a leading position in the world by relying on continuous technological innovation, perfect production and supply chain system and full market competition, which cannot be compensated by any subsidies.
He Yadong believes that China's new energy industry is committed to providing high-quality products for the global response to climate change, and has made positive contributions to the green transformation of countries around the world, including the European Union. The EU cannot hold high the banner of tackling climate change with one hand and keep advocating green cooperation, while wielding the big stick of protectionism with the other hand, imposing restrictions on normal international green trade and investment, and pursuing double standards in tackling climate change. The EU's actions may make it an obstructor of the global green transition, a disruptor of China-EU investment cooperation, and a saboteur of economic and trade mutual trust between the two sides.
He Yadong stressed that the global green industry is in the ascendant, and there is a broad space for China-EU green cooperation. China hopes that the EU will abandon protectionism, return to the right track of win-win cooperation, and earnestly provide a stable, fair, transparent and predictable competitive environment for green cooperation between Chinese and European enterprises, so that green will truly become the background color of China-EU economic and trade relations. China will pay close attention to the follow-up developments of the European side, reserve the right to take necessary measures, and resolutely defend the legitimate rights and interests of Chinese enterprises.
Source | Observer.com
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