Caught in the Middle: China and the EU Dispute Over Subsidy Rules

Eulerpool Research Systems Jan 9, 2025

Takeaways NEW

  • China criticizes the EU for its measures against foreign subsidies.
  • The dispute could affect trade relations and global markets.
The European-Chinese trade dispute is gaining new momentum: China accuses the European Union of hindering trade and investment with its measures to protect against foreign subsidies. These tensions once again highlight the complex relationship between the two economic giants. In a report published on Thursday by the Chinese Ministry of Commerce, the results of an investigation into the EU regulation on foreign subsidies are presented. A central concern for the Chinese side is the 'selective implementation' of this regulation, which China perceives as discriminatory. The investigation began in July of last year after the EU started to scrutinize Chinese subsidies for electric vehicles more closely. This development raises the question of how the EU and China will act in the trade sector in the future and what impact this could have on global markets.

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