Beijing Says Europe Needs To Question Why Its Prosperity Should Depend On US Interests

BEIJING (UrduPoint News / Sputnik - 02nd December, 2022) Europe has always suffered from crises caused by the policy of the United States and should think about why its prosperity always depends on Washington's interests, Chinese Foreign Ministry spokesman Zhao Lijian said on Friday.

Zhao recalled that several European leaders and officials have recently criticized Washington's Inflation Reduction Act as an unfriendly step that could result in a significant diversion of future investment away from Europe. He noted that the US, while calling Europe an important ally, has been more than willing to let it pay the price for the crises.

"For instance, as the US profiteers from the Ukraine crisis, Europe is bleeding from high inflation and soaring energy prices... It is not surprising that European press said Europeans need to ask themselves 'why our peace and prosperity should be dependent on American interest?' This is indeed a question that Europe and the rest of the world need to be serious about," Zhao told a briefing.

The diplomat further stressed that Washington's recent legislative initiatives completely ignored concerns of its European partners.

"The US legislation, designed to serve its own interests, shows no regard for other countries, not even its so-called allies and partners.

This is yet another example of the US's domineering America-first approach," Zhao said.

Earlier in the week, French President Emmanuel Macron expressed his concern over the US Inflation Reduction Act (IRA) that unlocks billions of Dollars in subsidies for new technologies and sustainable growth of the US economy, but at the same time may impair the position of European companies in the US market. The legislation was also top on the agenda of Macron's meeting with US President Joe Biden on Thursday.

The IRA, signed into law by Biden in August, commits $300 billion toward deficit reduction, in addition to providing approximately $369 billion in funding for energy security, including tax credits for US-made electric vehicles and subsidies to US consumers, and $80 billion to increase Internal Revenue Service tax enforcement and operations.

Concerns are rising in Europe that the US tax credit plan could kick off a subsidy race between the transatlantic allies at a time when they want to show unity in the face of the conflict in Ukraine. Germany and France have already suggested following the US with an EU subsidy regime.