Context:

Earlier this year, the EU launched investigations into China’s state support for its wind turbine and solar panel suppliers. These probes aimed to determine whether Chinese subsidies were creating unfair competition for EU manufacturers. The investigations cover imports in renewable energy, particularly the subsidies provided to wind turbine and solar panel manufacturers. In addition, the EU has imposed additional tariffs on Chinese-made EV imports, deeming them subsidized and aiming to protect EU manufacturers from unfair competition.

In a retaliatory measure, China has launched an investigation into whether the European Union’s recent trade actions against it constitute illegal barriers to free trade. If China finds any EU measures illegal, it may engage in bilateral talks, initiate multilateral dispute settlements, or recommend retaliatory measures.

Implication:

Job Creation and Loss: Increased tariffs will impact Chinese imports, resulting in decreased production and reduced employment, leading to trickle-down effects on compensation and employee welfare.

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