2024-03-12 10:30:34
Chinese competition in the industrial sector represents a major challenge for Europe. As the EU strategizes for a Net-Zero industry, China maintains its determination to defend its competitiveness on the global stage.
In 2019, China became the world’s top patent filer, surpassing the United States and Japan. Strategic initiatives launched by the Chinese government such as “ Made in China 2025 » or its artificial intelligence development plan for 2030 demonstrate China’s continued commitment to innovation and technological growth. In addition, the “New Silk Roads”, aimed at economically linking China to Europe, by integrating the areas of Central Asia through a vast network of road, rail and maritime corridors, will facilitate the country’s exports and will help find new markets.
The Chinese threat to the EU
Faced with this increased competition, Europe is faced with several challenges. Short term, falling prices of manufactured goods from China, fueled by industrial overcapacity and massive investments, is putting pressure on its companies. In particular, the solar sector is calling for emergency measures in the face of the import of Chinese panels at knockdown prices. More broadly, the move upmarket of Chinese industry threatens to reduce the market share of European products, particularly in key sectors such as electric vehicles and renewable energies, artificial intelligence and biotechnologies.
Faced with this threat deemed illegal for its industrial competitiveness, Europe does not hesitate to investigate. In October 2023, the European Commission officially opened an investigation into Chinese export subsidies for battery electric vehicles (BEV). “ The investigation will first determine whether the value chains of BEVs produced in China benefit from illegal subsidies and whether these subsidies cause or threaten to cause economic harm to EU manufacturers », informs the Commission. If this were the case, it could put in place “ anti-subsidy duties on imports of electric vehicles “. A new investigation could soon be launched for unfair competition against Chinese solar panel manufacturers.
Net zero industry: protecting and developing European industry
To protect and develop its industry, Europe wants to invest massively in research, innovation and the development of cutting-edge technologies. With this in mind, the Council and the European Parliament recently concluded a provisional agreement on the regulation for an industry « net zero “. This regulation aims to stimulate the production in Europe of low-carbon technologies necessary to achieve the EU’s climate objectives. The objective is to cover 40% of the Union’s deployment needs by 2030 with technologies produced on its territory.
To achieve this, the regulation provides a simplified regulatory framework and intends to offer flexible and secure conditions to investors. Projects identified as having greater decarbonization potential will benefit from accelerated procedures for granting construction or expansion permits.
A new economic security package
At the end of January 2024, the European Commission also adopted a package of measures on economic securityin accordance with the European strategy on economic security presented in June 2023. This package, criticized for being too “ vague », still made China react. Foreign Ministry spokesperson Wang Wenbin called on Europe not to take measures “ anti-globalization”, reports RTBF.
And for good reason, this package intends to filter foreign investments in key sensitive technologies, such as artificial intelligence, advanced semiconductors, the quantum industry and biotechnologies. The package also intends to better identify potential security risks linked to outbound EU investments.
In a context of heightened geopolitical tensions, the EU also intends to make export controls on dual-use goods, i.e. civil and military, more effective. The legislation also invites the European Council to recommend specific measures aimed at “strengthen security around research” throughout the Union. While China is increasing its partnerships, Europe also intends to strengthen its international cooperation, its strategic partnerships and its international trade agreements with the widest possible range of countries.
Finally, Europe is working on a regulation relating to “ the ban on the Union market of products resulting from forced labor “. Proposed by the European Commission in September 2022, it aims to prohibit the marketing of all products resulting from forced labor. According to the International Labor Organization (ILO)around 27.6 million people are believed to be forced to work against their will, including 15.1 million in the Asia-Pacific region. The Council adopted its position on January 24. Parliamentarians want the regulation on products resulting from forced labor to be adopted before the European elections next June.
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