The EU Chamber of Commerce has published a report claiming that Chinese subsidies for industries including new-
energy vehicles, information technology and robotics have “created problems for both China’s economy and European business”.
Beijing’s plans to use “staggering subsidies to create national champions in high-tech industries will further skew China’s business playing field and worsen trade frictions”, the report alleges.
The EU Chamber of Commerce says that state subsidies amounting to hundreds of billions of dollars and foreign technology transfers in 10 sectors are “highly problematic”, and it urges China to stop “interfering” in the market.
Chamber president Joerg Wuttke (pictured) said: “We see that Chinese market players are entering the global market-place, whereas we are still here in front of the Great Wall of China.
“We think China would be better off not picking winners and deciding who is doing what in the future. Our recommendation is: ‘Stay away, let the market pick the winners’.
“Also, the Chinese emphasis on self-sufficiency is particularly concerning; it suggests that Chinese policies will further erode the competitive landscape in favour of domestic companies.
“This could cause a new flood of over-capacity in various industries — as happened previously in the steel and solar-energy sectors — and exacerbate tensions with its international trade partners.”