CCCEU Statement on EC opens two in-depth investigations into Chinese companies under FSR in solar photovoltaic sector

April 4, 2024, Brussels

We are gravely concerned about the consecutive in-depth investigations against Chinese enterprises conducted by the European Commission under the Foreign Subsidies Regulation in the solar photovoltaic sector. To date, the European Commission has launched three FSR in-depth investigations, all targeting Chinese enterprisesⁱ. We express our serious dissatisfaction with the abuse of the new tool by the relevant EU authorities and the use of the Foreign Subsidies Regulation as a new tool of economic coercion to interfere with the reasonable and lawful economic operations of Chinese enterprises in the EU's green and low-carbon transition market.

We reiterate our opposition to the excessive discretionary authority granted to the European Commission under the Foreign Subsidies Regulation. The Regulation's overly broad and ambiguous definitions of key concepts, such as foreign financial contribution, not only place undue burdens on enterprises but also potentially discriminate against foreign enterprises, including Chinese ones. This situation is distorting the level playing field for Chinese enterprises operating in the EU.

We urge the EU to promptly enhance transparency and ensure the full protection of the defence rights of Chinese enterprises. As Europe and the global economy navigate a critical juncture, particularly amidst the imperative of green transformation, we call for the reduction of barriers to investment, public procurement, and business operations in 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.

ⁱ The first one against CRRC Qingdao Sifang Locomotive was terminated after the company withdrew from the bidding process.