By Peter Bergman (MoneyAmped.com)
The European Union initiated an inquiry into China’s acquisition of medical equipment on Wednesday as part of ongoing measures to safeguard domestic producers.
In addition, a number of investigations have been launched to determine whether or not Chinese manufacturers of clean technology are dumping subsidized goods on the European market. Investigations are also currently being conducted to determine whether or not Chinese-owned businesses are receiving unfair advantages from subsidies while also conducting business within the European Union.
As part of the investigations currently being carried out, the European Commission has stated that its goal is to guarantee fair competition and preserve the integrity of the market.
This is an exhaustive summary of the investigations that have been conducted:
Medical Equipment
According to a report published in the official journal of the European Union on April 24, the European Commission investigated China’s acquisition of medical devices through public procurement.
This investigation is the first case to be brought under the EU International Procurement Instrument, which aims to eliminate any favoritism toward domestic suppliers and to guarantee that competition is conducted equitably.
In the event that the Commission concludes that European suppliers are not provided with equal opportunities to enter the Chinese market, it has the potential to impose restrictions on Chinese medical device companies that are participating in public tenders within the European Union.
The investigation is anticipated to be finished within nine months; however, the Commission can extend this timeframe by an additional five months if necessary.
Solar Panels
Due to the announcement made on April 3, the Commission has begun two investigations in accordance with the EU Foreign Subsidies Regulation (FSR) to determine whether two Chinese bidders received disproportionate advantages from subsidies in their proposals for a solar power park tender in Romania.
Investigations are being conducted regarding a group that includes subsidiaries of Shanghai Electric Group, a state-owned company in China, ENEVO, based in Romania, and a division of LONGi, based in China.
By August 14, the Commission must decide whether to approve the contract, require the companies to make commitments to address competition concerns, or raise objections.
When CRRC Qingdao Sifang Locomotive decided to withdraw its tender, the Commission’s initial investigation under the FSR regarding the involvement of a Chinese train manufacturer in a Bulgarian bid for electric trains came to a successful conclusion.
Wind Turbines
According to statements made by Margrethe Vestager, the antitrust commissioner for the European Union, on April 9, the EU is currently investigating the subsidies that Chinese wind turbine suppliers have received for their products intended for European markets.
Vestager mentioned that an investigation will be conducted into the development of wind parks in Spain, Greece, France, Romania, and Bulgaria; however, she did not disclose the names of any specific companies that are actively involved.
The Chinese government has voiced its disapproval of the investigation, claiming that it is biased against Chinese companies and supports protectionist measures.
Electric Cars
It was announced on September 13 that the Commission intends to initiate an investigation into Chinese electric vehicles in order to determine whether or not they are eligible for subsidies. This investigation is being conducted with the intention of deciding whether or not punitive tariffs ought to be imposed.
This investigation aims to ascertain whether the European Union market receives an excessive amount of subsidies for Chinese electric vehicles exported to that market.
Wang Wentao, the minister of commerce for China, stated in April that the claims made by the United States and Europe regarding China’s excessive capacity for electric vehicles (EVs) were unfounded and did not have any basis in reality. During this time, a Chinese industry body voiced its disapproval of the investigation, claiming that it was intentionally biased against Chinese manufacturers.
The investigation, which was formally launched on October 4, is anticipated to continue for at least thirteen months. After approximately nine months have passed since it was first initiated, the Commission is authorized to implement temporary anti-subsidy tariffs.
