The raid on a Chinese company based in Rotterdam shows the European seriousness towards companies operating in the European Union with Chinese state support. This is what Europe correspondent Stefan de Vries says. It is the first time that the European Commission has intervened in this way.
Europe is showing its teeth to China by invading
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Earlier today, the Financial Times reported that European Commission inspectors, in collaboration with Dutch inspectors, raided Nuctech, a Chinese maker of customs scanners. Both the European Commission and the Chinese Chamber of Commerce confirm that raids have taken place, but would not reveal the name of the company. This can still be done at a later time. Raids have also been carried out in Poland.
Also read | Raid at customs scanner maker for state aid in China
The European Union today also launched an investigation into Chinese government procurement of domestic medical equipment. The EU wants to determine whether European suppliers have fair access to the Chinese market.
Stronger resources
It shows that things are serious for the EU, says Stefan de Vries. ‘Brussels has long accused Beijing of making it impossible for European companies to win Chinese government contracts.’ The message is clear. ‘Brussels wants China to open up the market.’ According to De Vries, the chance of this is small, so he will switch to more robust means.
Also read | ‘It appears that Europe is allowing itself to be maneuvered into a trade war with China’
The Netherlands, Germany, France and a few other European countries are among the absolute world leaders for advanced medical equipment. They cannot get a foot in the door in China, because Chinese companies are favored. ‘A thorn in the side of Brussels.’
‘In the eyes of Brussels it is an eye for an eye, a tooth for a tooth’
China is reacting displeased to the European investigation into the medical companies, which according to De Vries could take several months. The investigation could mean that Brussels will make rules that make it more difficult for Chinese companies to sell medical supplies to the EU through public tenders.
The EU believes that China favors its own companies with unfair practices, such as a ‘buy China’ policy. European companies also suffer from import restrictions and conditions that put them at a disadvantage compared to Chinese competitors.
Eye for an eye tooth for a tooth
De Vries does not rule out that the trade war between the EU and China will only get worse in this way. The Europeans are assured of American support, which has the same opinion regarding Chinese state aid. ‘In the eyes of Brussels it is an eye for an eye, a tooth for a tooth.’ In any case, the matter will be high on the agenda when Chinese leader Xi Jinping visits Europe for the first time in five years next month.
