Full Breakdown
China Opposes EU Investigations into Chinese Companies
12/18/2025, 10:37:00 PM
Overview of the Situation
China's Ministry of Commerce has publicly condemned recent investigations initiated by the European Union (EU) into Chinese enterprises, characterizing them as discriminatory and targeting. The EU's Foreign Subsidies Regulation (FSR) investigations have raised significant concerns in Beijing, particularly regarding their impact on Chinese investments and operations within Europe.
Core Events of the Investigations
The EU has launched a series of probes against Chinese companies, including an in-depth investigation into Nuctech, a state-owned manufacturer of security inspection products, and a prior inquiry into China Railway Rolling Stock Corporation (CRRC) related to its bids for light rail trains in Portugal. These investigations are part of a broader trend, with the EU reportedly initiating 12 trade remedy investigations and three foreign subsidy investigations against China since the beginning of the year.
Economic Impact on Chinese Firms
The Ministry of Commerce has estimated that the EU's enforcement of the FSR has resulted in approximately €2.1 billion (US$2.46 billion) in direct and indirect losses for Chinese firms. The ministry has criticized the EU for what it describes as excessive enforcement, a reversal of the burden of proof, and a lack of procedural transparency in these investigations, which they argue undermine the integrity of Chinese investments in Europe.
Official Statements & Responses
He Yadong, a spokesperson for the Ministry of Commerce, emphasized the importance of cooperative economic relations between China and the EU, stating that both sides should work together to oppose protectionism and maintain open markets. He expressed hope that the EU would provide a fair and transparent business environment for Chinese enterprises.
Criticism & Opposition
Critics of the EU's actions, including Chinese officials, argue that the investigations reflect a growing trend of protectionism within Europe. They contend that such measures not only harm Chinese companies but also disrupt the mutual benefits that have characterized China-EU economic relations. The Chinese government has called for restraint and prudence in the EU's use of trade and economic tools.
Conflicting Reports & Gaps
While the Chinese Ministry of Commerce has provided specific figures regarding the economic impact of the EU's investigations, there is a lack of detailed information from the EU regarding the rationale behind these probes and the evidence supporting them. This gap raises questions about the transparency of the EU's enforcement actions.
Verbatim Quotes
“such actions are egregious, with clear targeting and discriminatory intent,” ministry spokesman He Yadong said during a press conference on Thursday.” — He Yadong, Spokesperson, Ministry of Commerce
“it is hoped that the EU will work with China to uphold the important consensus reached at the China-EU leaders' meeting, jointly oppose protectionism, maintain open markets, exercise restraint and prudence in using restrictive trade and economic tools, and provide a fair, transparent, non-discriminatory, and predictable business environment for Chinese enterprises to conduct trade and investment cooperation in Europe.” — He Yadong, Spokesperson, Ministry of Commerce
The ongoing investigations and the responses from both sides highlight the complexities of China-EU trade relations, as both parties navigate the challenges posed by protectionist sentiments and regulatory scrutiny.
