· 2 min read
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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