China and the European Union have increased their commercial spats in recent weeks. Brussels, keen to reduce its dependence on Beijing, published a report on Wednesday on the distortions of competition induced by state aid within the Chinese economy.
The report details the impact of China's state planning on certain sectors: steel, aluminum, telecommunications, semiconductors, railway equipment and electric vehicles. According to a study carried out by the Kiel Institute, the subsidies granted by China to its companies are three to nine times higher than those granted by other OECD countries, such as the United States or Germany. The European Commission published a 700-page report denouncing Beijing's practices on Wednesday. The EU is seeking to cut down on China's subsidies to its own companies, as well as those of other countries, including the U.S. and Germany. It is also seeking to reduce China's dependence on the EU, which it has been trying to reduce since the 1990s. The Commission is also looking at ways to reduce the cost of doing business in China, which has been a source of tension between Beijing and Brussels.