Does the EU have what it takes to fight China on green tech?

illuminem summarizes for you the essential news of the day. Read the full piece on Politico or enjoy below:

🗞️ Driving the news: The European Union (EU) is intensifying its scrutiny of Chinese subsidies, particularly in the electric vehicle (EV) sector, by employing its newest regulatory weapon, the Foreign Subsidies Regulation (FSR)
• This follows traditional anti-subsidy and anti-dumping measures, reflecting a strategic broadening of the EU's trade defense mechanisms

🔭 The context: The EU's concerns center around China’s alleged unfair trade practices, such as subsidizing its exporters, which could potentially cripple EU industries by flooding the market with below-cost products like EVs and solar panels
• The FSR, unlike typical trade defenses, targets individual companies involved in EU procurement and mergers rather than entire sectors

🌍 Why it matters for the planet: The EU's aggressive regulatory stance aims to ensure fair competition within the green technology sector, crucial for sustainable development
• By preventing market monopolies and fostering a diverse competitive landscape, the EU supports the proliferation of eco-friendly technologies like renewable energy and electric vehicles.

⏭️ What's next: The EU is set to continue using a mix of traditional trade defenses and the FSR to tackle unfair competition
• The effectiveness of these measures in maintaining a fair and competitive market, essential for fostering innovation in green technology, will be closely watched

💬 One quote: "First off, the FSR targets only individual companies. After one company withdraws, another might just compete in the next tender," said Laurent Ruessmann, a veteran Brussels trade lawyer.

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