China's Ministry of Commerce Criticizes EU for Demanding Business Secrets... Indicates Investigation into Dairy Products Following Pork

China's Ministry of Commerce criticized the European Union (EU) for demanding business secrets during its investigation into anti-subsidy measures on electric vehicles, while also hinting at the possibility of trade investigations into dairy products. The ministry warned of additional retaliatory tariffs, stating that it will take all necessary measures to protect the rights and interests of Chinese companies.

Huo Yadong, spokesperson for China's Ministry of Commerce, said at a briefing on the 20th, "The European Commission collected a large amount of information on the production, management, development plans, technology, and manufacturing methods of Chinese electric vehicle and battery companies during the anti-subsidy investigation. They also demanded companies provide information on electric vehicle production costs, all components and raw materials, sales channels, pricing methods, EU customer information, and supply chain details." He criticized, "The type, scope, and volume of information collected by the EU are unprecedented and far exceed what is necessary for the anti-subsidy investigation."

[Image source=AP Yonhap News]

He added, "The European Commission repeatedly forced companies to submit such information during the investigation by warning that 'non-cooperation will lead to adverse consequences.' China will take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies," he emphasized.

According to local reports, the European Commission requested detailed information from Chinese companies about battery manufacturing methods, raw material composition, and chemical components. The investigation also covered production volumes over the past five years, lists of fixed assets, input details of parts and raw materials, sales conditions and pricing strategies for models, as well as company customer names and contact information. Credit limits, loans, bonds, bank drafts, and minutes from shareholders' meetings, boards of directors, audit committees, and joint venture contracts were also included in the demands.

The Ministry of Commerce also hinted at the possibility of additional trade investigations into European products. In response to inquiries about local media reports that Chinese industries requested the government to conduct anti-dumping investigations on EU pork and anti-subsidy investigations on dairy products, spokesperson Huo said, "We have paid attention to the demands of the relevant industries." He added, "Based on Chinese regulations and World Trade Organization (WTO) rules, domestic industries in China have the right to apply for investigations to protect normal market competition order and their legitimate rights. Investigative agencies review applications submitted by domestic industries and initiate investigations if the conditions for commencement are met."

The Ministry also explained that it is reviewing responses submitted by over 120 EU companies regarding the anti-dumping investigation on EU brandy, which began on January 5 this year. "The investigating authorities can make a preliminary decision 60 days after the investigation begins," it said, "and decisions will be made based on the investigation results."

Earlier, the European Commission announced on the 12th that it had notified Chinese authorities and targeted companies of plans to impose provisional additional tariffs ranging from 17.4% to 38.1% based on a preliminary conclusion of the anti-subsidy investigation on Chinese electric vehicles. The EU already imposes a 10% tariff on Chinese electric vehicles. The announced countervailing duty rates will be applied in addition to existing tariffs starting next month. If approved by the 27 EU member states in the second half of this year, the measures will be implemented for the next five years.

This content was produced with the assistance of AI translation services.