WASHINGTON — The European Commission, the permanent executive body of the European Union (EU), said on Wednesday (December 7) that the EU has taken escalated legal action against two lawsuits against China at the World Trade Organization (WTO), asking the WTO to settle the two lawsuits. Establish an expert determination panel.

According to the provisions of the WTO, when one party files a lawsuit against the other party on a trade dispute and fails to resolve the differences through bilateral consultations within 60 days, the complaining party has the right to take further action and request the WTO to set up an expert adjudication panel to make a ruling on the dispute .

The European Commission, which is in charge of the trade policies of the 27 EU member states, respectively, in January and February of this year, respectively, on China’s termination of trade with Lithuania and restrictions on EU companies seeking protection in foreign courts because Lithuania allowed Taiwan to set up a representative office in Lithuania. Use their patents to file a lawsuit at the WTO.

The European Commission stated that the measures taken by China on these two issues have seriously harmed the interests of European companies, and the trade sanctions against Lithuania have also damaged trade and supply chains within the EU. Beijing not only restricts the import of Lithuanian goods, but also bans the import of products from EU countries that contain Lithuanian components.

The European Union said in a statement on Wednesday that China had adopted discriminatory and coercive measures with its policies.

The European Commission had formally requested bilateral consultations with China at the WTO, which was also the WTO's first step in settling the dispute. But such negotiations rarely resolve disputes.

The European Commission said that the WTO adjudication panel to deal with the EU-China trade dispute may not be established until early next year, and it may take up to a year and a half to take relevant actions after the panel is established.

"China has received the relevant request from the European side," the head of the Department of Treaty and Law of the Chinese Ministry of Commerce said in response to a reporter's question on Wednesday.

"China has always managed foreign trade in a manner consistent with WTO rules, continued to strengthen the protection of intellectual property rights, and strived to create a good environment for innovation and business operations. The achievements are obvious to all. China regrets the European side's decision," said the responsible person. People say.

"China will properly handle the relevant request raised by the EU in accordance with the WTO dispute settlement procedures, and resolutely safeguard its legitimate rights and interests," the person in charge added.

In 2021, China will be the EU's largest trading partner, largest source of imports, and third largest export market. The EU is China's second largest trading partner, second largest source of imports, and second largest export market. In 2021, the total trade volume between China and Europe will exceed 800 billion U.S. dollars for the first time, reaching 828.11 billion U.S. dollars, a year-on-year increase of 27.5%. From January to August this year, the trade volume between China and Europe was 575.22 billion US dollars, a year-on-year increase of 8.8%.

The European Commission's escalation of the WTO lawsuit against China comes as the EU as a whole is re-examining its relationship with China and increasingly viewing Beijing as a competitor and challenger rather than a partner. The EU's energy crisis, caused by Russia's invasion of Ukraine, has also prompted EU leaders to express concern about economic overdependence on China.

The United States and the European Union held the third ministerial meeting of their bilateral Trade and Technology Committee (TTC) on Monday, a move aimed at boosting cooperation on regulation and a united front against China.

However, Reuters quoted an EU official as saying that the timing of the European Commission's action at the WTO has nothing to do with the US-EU ministerial meeting, but the EU still has a lot of work to do to win the lawsuit.

After EU member Lithuania agreed last year to Taiwan to set up a representative office in Vilnius under Taiwan's name, Beijing not only downgraded diplomatic relations between the two countries from the ambassadorial level to the level of charge d'affaires, but also forced EU multinationals to cut off commercial ties with Lithuania.

The European Commission has accused Beijing of violating plant and food safety rules by banning imports of products such as alcohol, beef, dairy and timber from Lithuania, without convincing evidence. From January to October this year, the bilateral trade volume between China and Lithuania dropped by 80%.

In another case, since August 2020, Chinese courts have issued a "anti-suit injunction" to prevent European companies from filing lawsuits in non-Chinese courts, such as the European Court of Justice, in order to protect patents.

Chinese manufacturers use injunctions issued by Chinese courts to pressure European companies with patents to allow them to obtain European technology at a lower price, the European Commission said.