Beijing, Jan 9, (V7N) – China alleged on Thursday that the European Union (EU) imposes discriminatory "trade and investment barriers" on Chinese firms, escalating ongoing trade disputes between the two economies.

The accusations follow China's investigation, launched in July, in response to EU probes into whether Beijing’s subsidies to its companies undercut European competition. China’s Commerce Ministry criticized the EU's Foreign Subsidies Regulation (FSR), arguing that it unfairly targets Chinese businesses.

The ministry claimed that FSR enforcement involved "vague criteria," "subjective investigations," and "discriminatory practices," leading to unfavorable treatment of Chinese products compared to those from other countries. Surprise inspections and strict compliance requirements, it said, created "huge uncertainty" and caused financial losses exceeding 15 billion yuan ($2.05 billion) for Chinese firms.

Beijing also objected to penalties imposed on companies deemed non-compliant and accused the EU of pressuring Chinese businesses to abandon or reduce projects in Europe. It argued that such actions exceed necessary regulatory limits and distort international market competition.

The dispute highlights deepening commercial tensions between the EU and China, with both sides accusing each other of using unfair trade practices. Beijing has reiterated its stance to protect the legal rights of its companies and expressed concern over increasing scrutiny from the EU.

END/BUS/RH/