Protectionist move harms Sino-EU relations: China Daily editorial

The fact that the European Union is planning, according to latest media reports, to launch an anti-subsidy investigation into Chinese steelmakers will hamper the pragmatic trade and economic cooperation between the two sides, and the healthy development of bilateral ties.

The Financial Times reported on Tuesday that the EU's announcement of the investigation could coincide with US President Joe Biden's hosting of European Commission President Ursula von der Leyen and European Council President Charles Michel on Oct 20.

Apparently, this is part of a US-EU deal to address the excess global steel production and carbon emissions problems. Washington has reportedly asked Brussels to take action against Chinese steelmakers in exchange for avoiding the reimposition of the Donald Trump administration-era tariffs on EU steel and aluminum. Former US president Trump had slapped the punitive tariffs on EU steel and aluminum in 2018, claiming they posed a risk to US national security.

The EU has already imposed punitive tariffs on 20 grades of Chinese steel and stainless steel products. Any additional tariff would be a violation of not only World Trade Organization rules but also Chinese companies' legitimate interests, and would undermine the global fight against climate change.

The planned anti-subsidy probe against Chinese steelmakers — following the launch of an anti-subsidy investigation into Chinese electric cars last month — could lead to the imposition of punitive tariffs on them. To be sure, the planned punitive tariffs are protectionist measures, which run counter to free market principles and risk further disrupting global industry and supply chains.

What is even more pitiful is that the EU has initiated the move ostensibly under the guidance of the US, which wants to protect its own steel and aluminum industries.

This is especially disappointing given that China and the EU concluded their 10th High-level Economic and Trade Dialogue just last month, during which both sides agreed to strengthen macroeconomic policy coordination, further open up their economies to, and create a fair and nondiscriminatory business environment for, each other's enterprises.

The protectionist measures the EU is reportedly planning to take against China contradict the consensus it has reached with the country to resolve bilateral differences through dialogue and seek common development and prosperity.

China and the EU are strategically important markets for each other and share broad common trade and economic interests. China is the EU's largest trading partner while the European economic bloc is China's second-largest trading partner. China is also the EU's largest source of imports.

As such, the EU should prudently handle its trade and economic relations with China, and refrain from taking trade protectionist measures, for they are detrimental to mutual interests.