HomeFutures and CommoditiesEuropean Union launches investigation into Chinese steelmakers over alleged unfair subsidies.

European Union launches investigation into Chinese steelmakers over alleged unfair subsidies.

EU Plans Anti-Subsidy Probe into Chinese Steelmakers

EU and US Collaborate Against Chinese Steelmakers

The European Union (EU) is set to announce anti-subsidy investigations into Chinese steelmakers during an upcoming summit with the United States (US), according to the Financial Times. In an attempt to protect industries from cheap competition, Brussels has agreed to join Washington’s efforts. This move comes as the US requested action against Chinese steel producers to avoid the reinstatement of tariffs on EU steel.

China’s Response

The Chinese Ministry of Commerce has yet to respond to the report. However, this development adds to the ongoing dispute between the EU and China regarding subsidies for electric vehicle (EV) imports. Brussels initiated an investigation in September to determine whether punitive tariffs should be imposed on Chinese EVs benefiting from state subsidies. China expressed concern over the limited time provided for consultations and urged Brussels to prioritize the stability of the global supply chain and their strategic partnership.

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Upcoming Summit

US President Joe Biden will host European Commission President Ursula von der Leyen and European Council President Charles Michel on October 20th. This meeting takes place just before the deadline to resolve the bilateral dispute over steel tariffs. The summit aims to address key issues and pave the way for a resolution.

Ensuring Fair Trade Practices

Collaboration between the EU and US in addressing the issue of Chinese steelmakers is a significant step toward protecting domestic industries from unfair competition. By investigating and addressing subsidies provided to Chinese steelmakers, both parties are striving to create a level playing field and promote fair trade practices.

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