China Faces Tougher Rules in Europe

The European Union unveiled draft rules last week aimed at cracking down on state-subsidized foreign companies, a move that could allow regulators to pursue big Chinese companies.

The legislation is the latest sign of Europe’s shifting stance toward China.
The rules would grant the bloc’s antitrust authorities new powers to block foreign companies from making acquisitions in Europe or receiving public contracts if they are deemed to have benefited from government subsidies.

The regulation would help address rising European concerns that Chinese businesses, bolstered by state support, are competing unfairly around the world.

“The problem is that China doesn’t play by World Trade Organization rules. They use all the advantages but do not want the disadvantages,” said Ulrich Ackermann, managing director for foreign trade at the German Mechanical Engineering Industry Association, a trade body for a sector that employs around 1.4 million people.

Source: Wall Street Journal