Yet another Sino-Brussels trade dispute is on the horizon, after the Chinese government warned\u00a0that it would impose new\u00a0\u2018countermeasures\u2019 if the EU does not back down\u00a0over its plans to create incentives for businesses and consumers to \u2018buy European\u2019.\u00a0<\/p>\n
The row \u2013 the latest in a series of sectoral disputes between Beijing and Brussels over the past three years \u2013\u00a0centres\u00a0on the \u2018Made in\u00a0Europe\u2019\u00a0rules\u00a0tabled by the EU Commission in March\u00a0as part of its Industrial Accelerator Act<\/a>. These require firms to meet\u00a0minimum\u00a0thresholds for EU-parts if they want to be able to access public money in strategic sectors, including\u00a0cars, green\u00a0tech\u00a0and\u00a0steel.\u00a0<\/p>\n The provision, which is part of the Industrial Accelerator Act tabled by the EU Commission in March, implicitly targets Chinese electric\u00a0batteries and vehicle manufacturers by requiring\u00a0them and other\u00a0foreign firms to partner with European firms and pass on technological\u00a0know-how\u00a0when setting up shop in the bloc.\u00a0<\/p>\n The commission has long been frustrated by China\u2019s subsidies and \u2018behind-border tariffs\u2019 that make it hard for foreign firms to access its market.\u00a0<\/p>\n In response, Beijing says that it has raised concerns with the EU that\u00a0this amounts\u00a0to \u201csystemic\u00a0discrimination\u201d.\u00a0The EU could retort that the technology transfer\u00a0rule\u00a0it is now suggesting\u00a0is\u00a0simply a mirror image of what China\u00a0already\u00a0demands.\u00a0<\/p>\n \u201cIf the EU\u2026 presses ahead with the legislation, and thereby harms the interests of Chinese companies, China will have no choice but to take countermeasures to firmly safeguard the legitimate rights and interests of its enterprises,\u201d the Chinese commerce ministry added in a statement.\u00a0<\/p>\n In recent years, China has\u00a0sought\u00a0to position itself\u00a0publicly\u00a0as a beacon of free trade promotion.\u00a0In reality, its\u00a0own rules on technology transfer, restrictions on rare earths exports and\u00a0blocks on European firms hoping to compete for public procurement tenders \u2013 to name but a few \u2013\u00a0are deeply protectionist and\u00a0have caused deep frustration among EU officials.\u00a0<\/p>\n China\u2019s trade surplus with the EU amounted to \u20ac360bn and is\u00a0expanding rapidly.\u00a0<\/p>\n