EU did not like Chinese subsidies
2023.01.30 13:45
EU did not like Chinese subsidies
By Tiffany Smith
Budrigannews.com – The European Commission will state in its “Green Deal Industrial Plan” on Wednesday that Europe and its partners must do more to combat the effects of Chinese subsidies for the production of clean technology products.
The plan outlines how Europe can respond to China and the United States’ multibillion-dollar subsidy programs while maintaining its position as a manufacturing hub for environmentally friendly goods like electric vehicles.
EU says trade and competition in net-zero industry should be fair and that some partners’ initiatives can have unintended consequences.
It asserts that Chinese subsidies have long been twice as high as those in the EU in relation to gross domestic product, with a pipeline of $280 billion in investments, ensuring China’s technological lead and causing market distortion.
The draft stated that:
“Europe and its partners must do more to combat the effect of these unfair subsidies and prolonged market distortion.”
However, the statement could still be modified prior to its publication on Wednesday, a week before an EU leaders’ meeting.
According to the European Commission, trade openness is a crucial component of the EU’s strategy to position the bloc as a market leader in net-zero technologies.
The EU’s network of free trade agreements will be expanded, a global partnership for critical raw materials will be established, and trade defense measures will be implemented by the Commission.
According to the document, the Commission will use a foreign subsidies regulation that went into effect this month to see if third-country subsidies have an effect on the EU’s internal market.
It states:
“The EU will also work with partners to identify and address distortive subsidies or unfair trading practices relating to IP theft or forced technology transfer in non-market economies, such as China.”
These practices could be related to IP theft or technology transfer.
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