Unlock Editor's Digest for free
FT editor Roula Khalaf has chosen her favorite stories in this weekly newsletter.
The Chinese Chamber of Commerce in the EU has attacked “dawn raids” by European authorities on Chinese security equipment suppliers, a move that further heightens tensions between the trading giants.
The European Commission and local law enforcement officers raided the company's offices in Poland and the Netherlands on Tuesday morning, the chamber said. The raid marks the first time the European Commission has carried out such a measure under foreign aid regulations and comes as the EU prepares to launch another investigation into Chinese medical equipment procurement, according to reports. It is reported that there are.
“The sudden surprise inspection on April 23rd harms the business environment for foreign companies in the EU under the guise of foreign subsidies,” the Chinese Chamber of Commerce and Industry said. Neither the chamber nor the EU has identified the company.
The EU is China's second largest trading partner and one of its most important sources of foreign investment. However, tensions between Beijing and Brussels are rising, with the latter launching multiple anti-subsidy investigations in recent months.
The European Union has accused China of fueling industrial overcapacity and increasing the risk of dumping, particularly in electric vehicles and renewable energy, which compete directly with European companies.
The escalating friction could make it difficult for Chinese President Xi Jinping to visit Paris next month, where he is scheduled to meet with French President Emmanuel Macron.
The European Commission said in a statement that the raids were carried out after “indications that the inspected companies may have received foreign subsidies that could distort the domestic market.” Stated.
“The surprise inspection is part of a preliminary investigation into allegations of distortion in foreign subsidies,” the ministry said.
The chamber said enforcement agencies “authorized by the European Commission” had seized IT equipment and mobile phones, reviewed documents and requested access to “relevant data”.
The statement accused the EU of using anti-subsidy investigations as a “weapon” to “repress” Chinese companies and carry out “unwarranted 'dawn raids'”.
“We call on Chinese companies to provide a truly fair and non-discriminatory business environment.”
The raids and anti-subsidy operations have raised fears of further retaliation. China has countered Western accusations of oversupply, saying the United States and its allies are trying to suppress and contain its industry. The Chinese government has launched an anti-dumping investigation into French brandy.
During a meeting with German Chancellor Olaf Scholz in Beijing last week, President Xi said China's exports were contributing to easing global inflation and supporting the transition to clean energy.
Chinese authorities have also carried out a series of raids on the offices of foreign consultancies over the past year, many without official explanation or approval, usually in the name of national security. considered to be related.
Bloomberg reported on Wednesday that an EU investigation into China's acquisition of medical equipment must be completed within nine months and will examine whether there is a lack of reciprocity in China's procurement market. This could lead to the EU restricting China's access to medical equipment tenders in Europe.