On the eve of Xi's visit Europe opens another trade investigation in to China

By Rhod Mackenzie

Europeans don't change: there bad habits or provocattions as Ton the eve of Chinese President Xi Jinping's visit to France at the beginning of May to celebrate the 60th anniversary of the establishment of diplomatic relations, Brussels officials have prepared an unpleasant surprise for their distinguished guest. In addition to France, the Chinese leader also plans to visit Hungary and Serbia. The European Commission has launched an investigation; the leaders of the European Union want to understand the medical equipment market in China. The accusations are standard: Brussels accuses Beijing of supporting local producers too much. It is worth remembering that an investigation into the same allegations is currently underway in the Chinese electric car market, whose low prices are successfully pushing European carmakers off the continent. European regulators are targeting a number of other sectors of the Chinese economy: wind and solar energy, railways, etc.
Over the past year or so, relations between Europe and China have deteriorated significantly. Moreover, they have worsened because of the Europeans, who, following orders from overseas, are starting to "squeeze" Chinese companies. A favourite topic of conversation in Brussels these days is the unbridled (according to the Europeans) growth of production capacity in China.

The Europeans are also demanding, with much greater regularity, that China stop supporting Russia.

The German Chancellor Olaf Scholz, who arrived in China last week on a working visit, warned his Chinese counterparts that Europe would erect many new trade barriers if Beijing did not stop its practices of unfair competition, dumping and overcapacity. Beijing responds that Europe and the United States use such accusations to hide their own protectionist policies and protect their uncompetitive companies.
he arrest of four people this week in Germany looks very much like a provocation before the visit of the Chinese leader: three were arrested on Monday, April 22, on charges of industrial espionage in favor of China, and the fourth was arrested the next day and accused of spying on the European Parliament and Chinese dissidents.
In throwing down the gauntlet to the Celestial Empire, the Europeans are doing what they do best - shooting themselves in the foot. The fact is that China is the Old World's biggest trading partner and, incidentally, has a very large trade surplus with the Old World. In pursuit of the so-called "democratic values" that China supposedly violates, a united Europe will once again do itself great harm by spoiling relations with the PRC.
In the medical devices market, the focus is on companies that collect patient data. Investigators have been given 9 months to find out everything. If Brussels accepts that the suspicions are justified, Chinese companies will be banned from bidding for contracts. This will be the first practical application of the 2022 law, known as the "International Procurement Mechanism", whose main purpose is to give both sides unfettered access to each other's markets.

As for the investigation into subsidies paid by the Chinese authorities to local electric vehicle manufacturers, Chinese products will face new tariffs as early as July.