China Chamber warns of discrimination in the EU's Clean Industrial Deal

The recent proposal of the European Commission (EC) to allocate €100 billion to support EU-made clean manufacturing within the bloc has raised concerns from the China Chamber of Commerce to the EU (CCCEU) about the EU policy's potential discrimination against foreign businesses, including those from China. According to the EC, the Clean Industrial Deal is “a bold business plan to support the competitiveness and resilience of our industry.” EC President Ursula von der Leyen pledged to deliver the deal within the EC's first 100 days of the Commission's mandate, prioritizing EU competitiveness and prosperity. Specifically, the plan aims to increase demand for EU-made clean products by introducing sustainability, resilience and made-in-Europe criteria in public and private procurements, among other actions.

In a statement sent to the Global Times, the CCCEU said that the EC's corresponding procurement standards should align with international rules. “The proposed 'Europe First' standard in public procurement for strategic industries may violate the principles of most-favored-nation (MFN) treatment or national treatment obligations, potentially discriminating against foreign competitors, including Chinese enterprises,” the CCCEU said. The Chamber noted that Chinese enterprises in the EU have played a significant role in many strategic industries. “If the EU adopts protectionist measures, it could place Chinese companies at a competitive disadvantage or risk violating relevant WTO principles,” it said.

In a separate response to the EC's claim of “overcapacity” mentioned several times in the new deal, the CCCEU said that the EU should not simply label global industrial divisions and exports as “overcapacity.” In key sectors such as green energy and digital industries, the world faces a shortage of capacity rather than an excess, the CCCEU said, adding that these industries urgently require international cooperation to achieve climate change and economic development goals. “We hope the EU will take a rational view of the global industrial division and adopt a constructive approach to promoting dialogue and cooperation,” the Chamber said. “International trade is market-driven, encouraging companies to enhance their competitiveness through quality improvements and supply innovations,” Zhou Mi, Senior Research Fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times, adding that so-called overcapacity concerns should not be exaggerated to justify protectionist actions.