China slams EU foreign subsidies rules, links them to trade talks
Beijing’s broadside against the Foreign Subsidies Regulation puts pressure on the recently relaunched trade dialogue.
BRUSSELS — China has escalated its trade dispute with the EU by implementing new regulations that prohibit Chinese companies from disclosing information to EU officials in ongoing investigations under the Foreign Subsidies Regulation (FSR). This move comes as the EU and China enter a critical phase of negotiations, with trade officials engaged in intense discussions to close the EU's €1 billion daily trade deficit with China.
The EU's European Commission is probing Chinese e-commerce giant JD.com, which is attempting to acquire Germany's consumer electronics retailer Ceconomy, for potential unfair advantages stemming from state support in China. Beijing's Ministry of Justice has ordered Chinese firms not to provide data to the EU in the FSR probe, particularly focusing on JD.com.
The EU maintains that the FSR is in line with World Trade Organization rules and aims to ensure equal treatment for all companies in the single market. However, China argues that the investigation demands excessive and irrelevant information, which could jeopardize the acquisition deal between JD.com and Ceconomy. The EU's trade chief, Maroš Šefčovič, is expected to hold a videoconference with Chinese officials in September, potentially leading to a trip to Beijing in early October.
This development could significantly impact the outcome of the trade talks and the future of the acquisition.
Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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