Foreign brands exporting products from China to the European Union, including iconic companies such as Tesla and European manufacturers They will be subject to investigation to verify whether they have benefited from “unfair aid” from the Chinese GovernmentValdis Dombrovskis, the Commission’s vice-president of economics and head of Trade, said in an interview with the ‘Financial Times’ newspaper: This statement contributes to the investigation of illegal aid to China recently announced by European Commission President Ursula von der Leyen. The Old Continent is suspicious of the Asian country’s illegal aid to electric vehicle production, which the European Commission considers an unfair practice that breaks the rules of the European Union market.
” sufficiency It is good for global business. Create and preserve good Jobs here in Europe. “But competition is only right if it is fair,” von der Leyen said during her State of the Union address, referring to China, and that “our companies are often excluded from foreign markets or fall victim to predatory practices.” Business practices in the solar industry: “Many young companies were driven out by heavily subsidized Chinese competitors. Leading companies were forced to declare bankruptcy, leaving promising talents in search of fortune.” foreign“said the German.
Von der Leyen assured that it was necessary to investigate China to prevent the same thing from happening in another key and priority sector for Europe, such as electric vehicles. subsidies In this industry. “One industry It is crucial for the clean economy and has enormous potential for Europe. But global markets are now flooded with cheaper Chinese electric cars. And its price is kept artificially low thanks to huge government subsidies. This distorts us Sunday“Von der Leyen is right.
fair competition
Now Dombrovskis recalls in an interview with the FT: There are “sufficient indications” to conduct this investigationWhile underlining that this is not limited to electric vehicles of Chinese brands, it may also affect vehicles of other manufacturers such as Tesla or Geely, owner of Swedish Volvo, if they receive subsidies for production.
Therefore he assured The old continent is “open to competition” in the electric vehicle sector, but this competition “must be fair”. Similarly, he noted that the EU is “probably” the biggest open market for Chinese manufacturers because other major powers are “already imposing tariffs” on electric cars from China.
Limit entry from “unrelated countries”
In this context where protectionism is on the rise, the Spanish Government is advocating a plan to protect the EU against major risks. ownership or control of foreign companies“about certain European companies”strategic sectors and critical infrastructures.” It comes amidst controversy due to Saudi Arabia’s intention to become the main shareholder of Telefónica with a 9.9 percent stake, and the approval of the Spanish administration must be obtained for its completion.
via document Durable EU2030Spain, which will be one of the discussion texts of the informal meeting of 27 heads of State or Government to be held in Granada on October 5, recommends that the presence of foreign companies from “like-minded” countries be protected and encouraged while the studies continue. This is being done to “gradually limit the dominance” of those with “dissimilar views”, specifically referring to non-democratic countries.
The incumbent Government of Pedro Sánchez specifically requests a focus on the presence of foreign companies in companies in Turkey. digital and green sectors Because the European Union poses “a risk to the security and development of national industries.” To achieve this, the Spanish presidency of the European Council proposes the use of mainly regulatory instruments, such as the European supervisory mechanism for foreign direct investment (FDI).