Firm offices raided, China calls EU ‘protectionist’ – Asia Times

After the Union searched the offices of a Chinese surveillance equipment supplier in Europe and looked into China’s medical device procurement market, Beijing has referred to the EU as “protectionist.” &nbsp,

The German Commission, the body of the EU’s executive branch, conducted its first-ever inspection of a Chinese company’s branches in Poland and the Netherlands on Tuesday night without giving any notice. &nbsp,

According to a statement released by the China Chamber of Commerce to the EU, police authorities authorized by the EC seized the Taiwanese company’s IT equipment and personnel ‘ mobile phones, inspected business records, and demanded admittance to relevant information. &nbsp,

The CCCEU stated that the EU’s deeds have shocked and dissatisfied it and its people. It claimed that the EU’s attacks had a negative impact on all non-EU companies in the region as well as Foreign businesses. &nbsp,

According to the report, the immediate, unanticipated inspection, disguised as foreign subsidies, undermined the EU’s business environment. &nbsp,

” The EU has been often using its economic and trade’ kit’ and trade ‘ solutions ‘”, Wang Wenbin, a director of the Chinese Foreign Ministry, said in a regular press briefing on Wednesday. ” The EU says it is the most open market in the world, but as the world you see, the EU is obviously inching toward protectionism”.

He urged the EU to uphold its dedication to an open market and good competition, abide by the rules of the World Trade Organization, and prevent pursuing and restraining Taiwanese companies under different pretenses.

According to the EC, the inspected Chinese organization may have been given international subsidies that may stifle the inner market in accordance with the Foreign Subsidies Regulation.

Medical device businesses

The EU’s second investigation into Chinese businesses in recent months was the most recent raids of the unknown Chinese surveillance equipment provider’s offices in Poland and the Netherlands. &nbsp, &nbsp,

Prior to this, the EU launched inquiries into Chinese manufacturers of solar panels, wind turbines, and electric trains. It claimed that China had won green project contracts in Europe by using its socialist economic system to groom its state-owned enterprises.

Last October, the EU launched an anti- subsidy investigation into Chinese electric vehicles. &nbsp,

In addition to these, the EU announced on Wednesday that it had launched an investigation against Chinese medical device suppliers for the first time under the International Procurement Instrument.

Evidence from the study revealed that China’s procurement market for medical devices has gradually become more opaque for both EU-based and foreign companies, as well as EU-made products.

It criticized China for unfairly distinguishing between local and foreign businesses, as well as between locally produced and imported medical devices. &nbsp,

The EU claimed to have already communicated its concerns to Chinese authorities in person and in person, but had not yet received satisfactory responses or actions.

With the intention to end the discriminatory measures, it will now invite the Chinese authorities to submit their opinions, provide pertinent information, and launch a consultation.

Within a nine-month window, which can be extended by five months, the EU’s investigation and consultations will be finished.

According to an unnamed representative from the Chinese Commerce Ministry’s Trade Remedy and Investigation Bureau, “in recent investigations, the EU has set clear targets, abused its procedures, and weaponized its investigation tools.” In the name of” fair competition,” these protectionist acts “have distorted the fair competition environment.”

China will closely monitor the EU’s subsequent actions, according to that spokesperson, and will take all necessary steps to vehemently protect the company’s legitimate rights and interests.

According to an industry report published by AskCI Consulting Co Ltd, China’s medical device market grew 10.2 % to 1.04 trillion yuan ( US$ 143.5 billion ) in 2023 from 940 billion yuan in 2022. The figure is expected to surge 9.1 % year- on- year to 1.13 trillion yuan this year.

Europe’s medical device market is set to grow 4.1 % to US$ 151.7 billion this year from US$ 145.79 billion in 2023, according to Eurostat. &nbsp,

Some researchers believe that China may have already surpassed Europe to become the second-largest market for medical devices in the world after the United States did last year. Even if it has n’t, China is likely to be able to do so in 2024. &nbsp, &nbsp,

Xi’s visit to Europe

The EU has repeatedly urged China to put an end to the Russian-Ukraine war over the past two years. However, it has been disappointed by Beijing’s response so far. &nbsp,

In a meeting with Chinese President Xi Jinping in Beijing in December, European Council Chairman Charles Michel demanded that China immediately resolve its dispute with 13 businesses that supply Russia with dual-use goods. Ursula von der Leyen, president of the European Commission, advised China to stop Russia from attempting to stifle the impact of sanctions.

The EU announced in February of this year that it was adding nearly 200 people and organizations, primarily from Russia, to its blacklist as a result of their efforts to provide Russia with advanced technology and military products produced in Europe. Some of these businesses have locations in Serbia and Turkey. &nbsp,

Xi Jinping, the president of China, is scheduled to visit France, Serbia, and Hungary in early May, according to media reports. In Paris, Xi will meet with French President Emmanuel Macron as this year marks the 60th anniversary of China-France diplomatic relations. &nbsp,

China’s industrial overcapacity and support for Russia will be on top of the agenda in the Xi- Macron meeting, said some commentators.

In an interview in February, Serbian President Aleksandar Vucic claimed Taiwan is a part of China. He stated that Xi will travel to Serbia this year. &nbsp,

Read: Chinese firms to assemble EVs in Europe, duck tariffs

Follow Jeff Pao on Twitter: &nbsp, @jeffpao3