The European Union (EU) announced last week that it will launch anti-dumping and anti-subsidy investigations into telecommunications equipment coming out of China. News of this probe comes just months after the EU imposed punitive tariffs on Chinese solar panels.
Why does the EU, China's largest trading partner, continue picking trade disputes with China? The EU is likely trying to deflect the impact of its own economic woes elsewhere.
With much of Europe still trapped in a debt crisis which began in 2011, European nations are keen to impose protectionist policies as a way to shield their resources and their industries. And by launching anti-dumping and anti-subsidy inquiries, the EU hopes to gain some leverage against China which will benefit its trade with the country.
While no one knows what the EU's investigation will bring, China needs to prepare for all eventualities.
The author is Liu Longhua, an expert on the solar power market.