China Criticizes EU For 'Protectionist' Investigation Into Its EVs
Beijing has strongly criticized the European Commission's initiation of an investigation into China's electric vehicle (EV) subsidies, labeling it as protectionist and warning of potential damage to economic relations, Brenda Goh and Ryan Woo reported for Reuters.
European Commission President Ursula von der Leyen accused China of flooding global markets with electric cars at artificially low prices due to substantial state subsidies. I Photo: European Commission X
European Commission President Ursula von der Leyen announced the investigation on Wednesday, accusing China of flooding global markets with electric cars at artificially low prices due to substantial state subsidies.
The investigation, which could lead to punitive tariffs, has raised concerns of retaliatory measures from Beijing, and Chinese industry executives have voiced complaints, asserting that the sector's competitive advantage is not solely due to subsidies.
France has been calling for such an investigation for several months, aligning with President Emmanuel Macron's long-standing campaign for the EU to adopt a tougher stance on trade and advocate for a level playing field.
Other EU countries also view China more as a rival than a partner and concur that the bloc should take a more assertive stance. A decade ago, Germany, apprehensive of retaliation, opposed tariffs on Chinese solar panel imports, ultimately leading to a compromise with Beijing.