In 2024, tensions in trade relations between China and the EU have heightened. On April 10th, the European Commission updated its report on economic practices in China, now including industries such as telecommunications, semiconductors, railways, renewable energy, and electric vehicles.
Reportedly, despite strong objections from China, the revised EU report suggests that EU manufacturers may have filed anti-dumping complaints against Chinese chip and clean technology producers.
According to reports from Commercial Times and the Hong Kong Economic Journal (HKEJ), the latest version of the EU report spans 712 pages, expanding from the initial 2017 report to cover additional areas, including the role of the Chinese government in economic planning, state-owned enterprises, and alleged distortive practices.
Earlier, the EU enacted new regulations on “Foreign Subsidies” in July 2023, followed by an anti-dumping investigation into Chinese electric vehicles in October of the same year. In response, China launched its own investigation into EU-distilled brandy containers in January of the following year.
In further developments, the EU targeted Chinese company CRRC, leading to its withdrawal from public procurement tenders in Bulgaria. Recently, the EU initiated an investigation into Chinese-made wind turbines.
Amidst escalating tensions, Chinese Minister of Commerce Wang Wentao visited Europe on April 7th to stabilize relations and discuss trade disputes. However, on April 10th, Chinese officials expressed opposition to the updated EU report during a meeting in Brussels.
Meanwhile, German Chancellor Olaf Scholz is scheduled to lead a delegation to China on April 13th, with executives from companies like BMW and Mercedes-Benz accompanying him.
Despite a significant decline in imports from China between 2022 and 2023, Germany maintains dependency in sectors like chemicals and computers, according to Reuters. However, significant structural changes are reportedly not yet apparent.
