The China Chamber of Commerce for Import and Export of Machinery and Electronic Products(CCCME)warned on Friday that the EU members'backing of anti-subsidy measures targeting Chinese electric vehicle(EV)companies will lead to a loss of investment,responding to the EU's Foreign Subsidies Regulation(FSR)--a regulation known for its role in primarily deterring foreign companies especially Chinese investors.

Many EU countries have long hoped that Chinese EV companies would invest and set up factories in Europe.Analysts suggest that the European Commission(EC)'s imposition of anti-subsidy duties on Chinese EVs,which will suppress the export of the corresponding Chinese products to Europe,is intended to push Chinese companies to invest in Europe,thus boosting the EU automotive industry,creating local jobs,and achieving green and sustainable development goals.However,the CCCME warned that"the reaction from Chinese companies indicates that the EU's approach has had the opposite effect."

Before the EU initiated its anti-subsidy investigation into electric vehicles,many Chinese car manufacturers had already begun or planned to invest in or establish operations in Europe."Since the EC decided to impose temporary anti-subsidy duties on Chinese EVs,the Chinese EV industry has expressed strong opposition to the EU's actions…Many Chinese companies have voiced significant concerns to our chamber regarding the investigation's results and the potential risks of facing scrutiny under the EU's FSR in their European investments,"the CCCME said.

Since the beginning of this year,the EU has launched five investigations under the FSR into Chinese companies.To date,there have been three in-depth investigations,one proactive investigation,and one unannounced raid,with all three in-depth investigations forcing Chinese companies to withdraw from bidding projects.

The EU's multiple investigations targeting Chinese companies are clearly discriminatory,potentially violating WTO most-favored-nation and national treatment rules,severely distorting an environment of fair competition,and bringing significant risks and uncertainties to Chinese companies operating in or investing in Europe,the CCCME stressed on Friday.

The CCCME warned that the"subsidy label"identified in the EU's anti-subsidy probes over Chinese EVs is likely to become an excuse for future investigations under the FSR into Chinese investors in Europe,raising deep concerns and concern among enterprises.

（Picture: Veer）