China hopes for protectionism-free EU foreign subsidy policy
By Niu Ruifei
People's Daily app
1592460702000

Brussels (People's Daily) – China hopes the European Union's new foreign subsidy policy can be free from the influence of protectionism, a Chinese Mission to the EU spokesperson said on Wednesday.

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(File photo: Xinhua)

The EU released a white paper that will address the "distortive" effects of foreign subsidies on the EU single market. Companies that receive foreign subsidies of more than 200,000 euros in three years will be investigated. At the same time, companies are required to notify their acquisitions of EU companies and undergo government review. 

"China hopes that the EU measures comply with the basic principles of the World Trade Organization and refrain from creating new trade barriers under the pretext of subsidies," the spokesperson said.

Analysts say that the document targets Chinese companies' mergers and acquisitions activities in Europe, and was issued to tackle the issue of China's unfair competition.

The spokesperson stressed that China's position on the subsidies policy has always been clear -- follow the rules of the WTO and commitments as a member state. China's subsidy measures are aimed at encouraging environmental protection and energy conservation, supporting research and development, and promoting the structural adjustments of enterprises—all of which are in line with WTO rules.

"In the current situation where nations are still fighting COVID-19, the EU needs to avoid sending negative signals to the world," the spokesperson noted.

(Compiled by Li Bowen)