China Accuses EU of Unfair Trade Practices

China has concluded that the European Union's Foreign Subsidies Regulation (FSR) imposes unfair trade and investment barriers against its companies, prompting concerns about bilateral relations. The Chinese Ministry of Commerce's investigation criticizes the FSR for disproportionately burdening Chinese firms, alleging that it violates World Trade Organization (WTO) rules. While Beijing has not announced immediate retaliatory measures, it is considering options including WTO arbitration and other counteractions. This situation escalates ongoing tensions as the EU has recently imposed tariffs on Chinese state-owned enterprises, leading to accusations of protectionism from Beijing. Both sides are engaged in discussions to potentially resolve these disputes, but analysts warn that the current trajectory could intensify trade conflicts and disrupt global supply chains. The Chinese Chamber of Commerce has urged the EU to address what it views as improper regulatory practices.