Understanding which Chinese products the EU is investigating

The European Union has initiated anti-subsidy and anti-dumping investigations on products from China, including tin-plated flat-rolled steel, wood flooring, medical equipment, and electric cars.

Moreover, it has launched multiple investigations into whether Chinese clean technology manufacturers are dumping subsidized goods in the EU market and whether Chinese companies operating in the EU are unfairly benefiting from subsidies.

The European Commission, conducting the investigations, stated that their objective is to prevent unfair competition and market distortions.

Recent investigations by the EU on Chinese goods include:

On May 16, the European Commission launched an anti-dumping investigation into tin-plated or coated flat-rolled iron and steel products.

The investigation was initiated after a complaint by the European Steel Association (Eurofer).

The investigation is set to conclude within 14 months and may result in provisional duties being imposed within 7 to 8 months from the start of the investigation.

On May 16, in response to a complaint by the European Federation of Solid Wood Flooring, the European Commission initiated an anti-dumping investigation into imported wood flooring.

The investigation pertains to multi-layered wood flooring, excluding bamboo panels or mosaic flooring with bamboo face at least as the top layer.

On April 24, the European Commission announced an investigation into Chinese manufacturers of medical equipment for public procurement.

This marks the first investigation since the EU introduced the International Procurement Instrument (IPI), aimed at preventing unfair favoritism towards domestic suppliers in different countries.

If the European Commission finds that European suppliers do not have fair market access opportunities in China, the EU can restrict Chinese medical equipment companies from participating in EU public tenders.

The investigation is set to conclude within 9 months, with the possibility of a 5-month extension.

The European Commission stated that Beijing would be “invited to express its views and provide relevant information” and could engage in consultations with the Commission to “eliminate or mitigate the measures mentioned.”

On April 9, EU Competition Commissioner Margrethe Vestager announced an investigation into subsidies received by Chinese wind turbine suppliers exporting to Europe.

Vestager mentioned studying wind farm developments in Spain, Greece, France, Romania, and Bulgaria without disclosing specific company names.

Beijing criticized the investigation as discriminatory against Chinese companies and supporting protectionism.

On May 13, EU Commissioner for Internal Market Thierry Breton announced that the European Commission would end its investigation into Chinese companies following their withdrawal from a solar park tender in Romania.

On April 3, the European Commission initiated two investigations to determine if Chinese companies disproportionately benefited from subsidies in a 610 million euro contract bidding process.

The first consortium under investigation was formed by the Romanian ENEVO group and Longi Solar Technologie GmbH, a German subsidiary of Shanghai Electric Group Co.

Breton noted Longi Solar and Shanghai Electric’s withdrawal from bidding, leading to the end of the investigation.

On September 13, 2023, the European Commission announced an anti-subsidy investigation into Chinese electric cars to ascertain if punitive tariffs should be imposed.

The EU aimed to determine if electric cars exported from Beijing to the EU market benefited from excessive subsidies. By October 4 of the same year, the EU officially initiated anti-subsidy investigations through sampling on BYD, SAIC Motor Corporation, and Geely Auto Group – three Chinese electric car manufacturers.

The investigation is scheduled to last 13 months, with the Commission potentially levying temporary anti-subsidy duties nine months into the investigation.

The Chinese Ministry of Commerce dismissed concerns about overcapacity in China’s electric car production as unfounded.

According to Reuters in May 2024, the European Commission formally warned three Chinese electric car companies under anti-subsidy investigation for failing to provide sufficient data.

If the Commission deems that the investigated enterprises do not provide adequate data, they will calculate tariffs using existing evidence, often resulting in inflated tariffs.

The Chinese Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) stated that the EU’s anti-subsidy investigations were aimed at suppressing Chinese car manufacturers.

One of the Chamber’s complaints is the EU Commission’s request for vast amounts of information from Chinese car manufacturers.

On May 14, the United States announced an increase in tariffs on Chinese electric cars from 25% to 100% based on a review report from the 301 investigation.