China's response to EU car subsidy probe

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【Summary】China has warned that the European Union's probe into its subsidies for electric cars will negatively impact trade relations. The investigation could lead to the EU imposing duties on cars sold at lower prices, which China sees as protectionism. European automakers and member states have welcomed the investigation as a move to tackle unfair competition. China has already criticized the probe, stating that many EU members also subsidize their electric vehicle industries.

FutureCar Staff Sep 14, 2023 9:21 AM PT

China's response to EU car subsidy probe

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According to some experts, China could surpass Japan and become the world's largest car manufacturer this year.

China has issued a warning to the European Union (EU) regarding the EU's probe into Beijing's subsidies for electric cars. China accuses the EU of engaging in "naked protectionism" and claims that this investigation will negatively impact China-EU trade relations.

The investigation, announced by European Commission President Ursula von der Leyen, could result in the EU imposing duties on cars that are believed to be unfairly sold at lower prices, undercutting European competitors. The move has been praised by European automakers and EU member states as a step towards addressing "unfair competition."

The Chinese Ministry of Commerce released a statement criticizing the EU's proposed investigative measures, stating that it is an act of protectionism that will disrupt and distort the global automotive industry supply chain.

Beijing has responded to the probe by highlighting that many EU members also subsidize their electric vehicle industries, questioning the EU's position to launch an anti-subsidy investigation into Chinese electric vehicles.

There have been ongoing concerns in Europe about the continent's reliance on Chinese products, particularly those related to clean energy. EU's internal market chief Thierry Breton has warned about the trend of Europe becoming a net importer of electric vehicles and solar panels.

China has called on the EU to engage in dialogue and consultation, creating a fair and non-discriminatory market environment for the joint development of the China-EU electric vehicle industry. China pledges to closely monitor the protectionist tendency and actions of the EU and protect the rights and interests of Chinese enterprises.

It is worth noting that China could potentially surpass Japan to become the world's largest car manufacturer this year.

European manufacturers also face challenges with state subsidies for electric vehicles in the United States.

China emphasizes the importance of a fair and predictable market environment and urges the EU to work towards the joint development of the China-EU electric vehicle industry.

China vows to closely observe the EU's protectionist tendencies and subsequent actions and will firmly safeguard the legitimate rights and interests of Chinese enterprises.