Firmly oppose trade protection barriers and fully safeguard the legitimate overseas development of enterprises

Recently, the Chinese Ministry of Commerce officially submitted official comments on the EU Industrial Accelerator Act to the European Commission, clarifying China's core position, facing the discriminatory restrictive clauses and unreasonable investment barriers in the bill, solemnly warning the negative impact of relevant European legislation, and resolutely safeguarding the legitimate rights and interests of China's industries and overseas enterprises. Our company firmly supports the official statement of the Ministry of Commerce, firmly opposes all forms of trade protectionism and institutional investment discrimination, always adheres to the global cooperation concept of fair competition and mutual benefit, and calls on the EU to abide by multilateral trade rules, abandon exclusive protection practices, and properly resolve economic and trade differences through equal dialogue.

According to official information, the EU's Industrial Accelerator Act, which aims to accelerate local industrial upgrading and promote green and low-carbon transformation, actually sets strict restrictive regulations targeting the four emerging strategic industries of batteries, electric vehicles, photovoltaics, and key raw materials. This bill not only sets multiple thresholds for foreign investors to enter and operate, but also imposes mandatory "EU origin" exclusive clauses in core policy areas such as EU public procurement and government public support, artificially constructing regional trade and investment barriers. Such targeted restriction measures directly target China's advantageous green manufacturing industry, which is essentially typical trade protectionism behavior and constitutes blatant institutional discrimination, seriously violating the basic principles of global economic and trade cooperation.

Note: The image is sourced from CCTV News

The Ministry of Commerce clearly pointed out in its official comments that the EU bill has multiple fundamental violations, which have a negative impact on the multilateral trading system, China EU economic and trade cooperation, and the overall development of global green industries. From the perspective of international rules, multiple provisions of the bill are suspected of violating the core basic principles of most favored nation treatment and national treatment of the World Trade Organization, as well as the core rules of international economic and trade agreements such as the General Agreement on Tariffs and Trade 1994 and the Agreement on Trade Related Investment Measures. This is a blatant impact and destruction of the current multilateral trade governance system. From the perspective of cooperative development, the bill specifically discriminates against Chinese investment enterprises, violates the underlying principles of commercial voluntariness and fair competition in the market economy, and runs counter to the important consensus reached by China and Europe on resolving economic and trade frictions and deepening practical cooperation. It greatly undermines the confidence of our enterprises in investing in Europe and seriously disrupts their long-term business layout and development expectations for Europe.

In addition, the protectionist bill appears to be protecting local industries in the EU, but in reality, the benefits outweigh the losses and the drawbacks far outweigh the advantages. In the long run, the closed barriers constructed by the bill will not only undermine the fair competition ecology of the EU's domestic market, but also restrict the orderly inflow of high-quality foreign investment, advanced technology, and efficient production capacity. On the contrary, it will directly drag down the overall process of the EU's own green and low-carbon transformation, push up local industrial development and consumer costs, and bring new impacts to the implementation of global multilateral trade rules, exacerbating the risk of fragmentation of the global industrial and supply chains. To this end, the Chinese side has clearly made reasonable demands to the European side, suggesting the complete removal of unreasonable content such as discriminatory investment requirements, mandatory local content indicators, mandatory intellectual property and technology transfer, and exclusive restrictions on public procurement in the bill. We urge the European side to strictly abide by WTO rules and abandon discriminatory trade restriction measures.

The Chinese side solemnly declares that it will continue to closely monitor the entire process of the subsequent legislative review and implementation of the bill, maintain smooth communication and dialogue channels, and is willing to properly negotiate differences with the European side based on the principles of equality and mutual trust. At the same time, China has a clear bottom line and a firm stance. If the European side ignores China's reasonable concerns and goodwill suggestions, insists on promoting the legislation and implementation of the bill, and further damages the legitimate overseas business rights and interests of Chinese enterprises, China will take necessary countermeasures and resolutely defend the national industrial development interests and the legitimate rights and interests of enterprises.

As an enterprise that deeply cultivates physical industries, global markets, and green low-carbon fields, our company has always adhered to the development concept of compliant operation, mutual benefit and win-win, and open collaboration. We strictly abide by the local operating rules of each country, deeply participate in the division of labor of the global green industry chain and supply chain, and always support the global carbon neutrality cause and regional economic coordinated development through pragmatic cooperation. In response to the potential business risks brought about by the EU bill, our company will continue to follow up on the latest legislative developments of the bill, comprehensively analyze the various impacts of relevant provisions on the business layout, market expansion, and supply chain support of enterprises in Europe, improve risk prevention and control plans in advance, optimize overseas business layout, strengthen compliance management system construction, and firmly hold the bottom line of stable business development of enterprises.

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