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CCCEU Statement on EC reportedly launching FSR probe

CCCEU| Updated: Apr 10, 2024

CCCEU Statement on EC reportedly launching FSR probe into Chinese wind turbine suppliers

             Brussels, April 9, 2024


The CCCEU takes note of reports that the EU announced to launch an investigation against Chinese wind turbine suppliers under the Foreign Subsidies Regulation (FSR) on April 9. In less than two months, the EU side has launched four investigations under the new tool, all targeting Chinese enterprises. We express profound dissatisfaction with the lack of transparency in the EU side's intervention in the regular business and development of Chinese enterprises in the bloc.

It is worth noting that these investigations are directed towards green and clean energy sectors, posing a risk of stifling the outcomes of longstanding investments in research, development, and cultivation by Chinese enterprises. This results in significantly unfair market competition for them.

We reiterate that the EU side's continuous deployment of the FSR against Chinese enterprises forges an act of economic coercion. This action sends a detrimental signal to the world, suggesting discrimination against Chinese enterprises and endorsing protectionism.

The FSR endows the European Commission with excessive discretion. The chamber received reports from Chinese companies that, during the FSR investigations, the European side has broadened the definition of "foreign financial contribution," encompassing numerous elements that do not actually qualify as subsidies. Additionally, it demands enterprises submit a significant volume of materials within tight deadlines, many of which contain sensitive information. These practices have severely encroached upon the rights of Chinese enterprises to defend themselves and have undermined their interests. We firmly oppose such actions.

While deliberately ignoring the significant subsidies granted by certain countries to their emerging green industries, the European side has imposed obstacles and market barriers against Chinese enterprises operating in the green sector. This not only contravenes the principles of fair market competition but also undermines the EU's commitment to enhancing international cooperation in global emission reduction and low-carbon coordination.

As the green transition enters a pivotal stage, we urge the European side to reassess its approaches, recommit to dialogue and cooperation, and endeavour to establish a business environment that is fair, impartial, and non-discriminatory towards Chinese enterprises.