EU 'absolutely willing' to use trade tools against China to fight unfair practices European Union launches train investigation

On Friday, the European Commission announced it was investigating a subsidiary of the company. CRRCQingdao Sifang Locomotive over a procurement contract with Bulgaria worth €610 million (US$655 million) to provide trains.

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under foreign subsidy regulations, companies must flag state aid received when bidding for intra-EU procurement tenders. The commission said in a press release that there are “sufficient indications that this company is receiving foreign subsidies that distort the domestic market.”

“We receive grants all over the world. I think Europe is the only jurisdiction that has an elaborate management system, so we know when, how and for what purpose we are spending. , it becomes transparent to competitors who may not understand the same thing,” Vestager said.

Asked whether a further investigation could be expected before June’s European elections, Vestager said the timing “can’t be set in mind on election day,” but added, “It will be based on the content and the incident.” “It must be done,” he said.

“So I would like to draw your attention to the fact that we are happy to take advantage of that, but right now when it comes to public tenders, the first case was the railway case, but it could have been similar in other sectors as well. “It’s sexual,” she said.

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The railway investigation marks the latest EU investigation into China’s commercial practices. A series of trade investigations have been conducted, the most high-profile of which target trade subsidies. country’s electric vehicle sector.

But Vestager denied that the weapons of trade and competition were aimed squarely at China.

“I don’t think you can say we’re not stepping up against China. We’re going to counter what we see as unfairness,” she said, adding that she was surprised the tool was activated. He added that it was not something that should be done.

“It took time to prepare the foreign subsidy system, but I think we have been completely transparent about why we need it and what it should be used for. Now we have it and we have an obligation to use it.”

Chinese business groups in Europe “expressed great disappointment and deep concern over this investigation.”

The Chinese Chamber of Commerce and Industry told the EU in a statement that “the launch of a thorough investigation…sends a discouraging message to Chinese investors intending to explore and do business in the EU market.”

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