EU launches investigation into Chinese electric cars

The European Union (EU) has launched an investigation into subsidies for electric cars imported from China.

The official notification on the initiation of an investigation by the EU Commission into electric cars imported from China to the member countries of the Union was published in the Official Journal of the EU.

The notification stated that electric cars of Chinese origin were subsidized and that this situation harmed the EU industry, and that the EU Commission launched an anti-subsidy investigation on its own initiative.

In the EU Commission’s statement on the issue, it was stated that “On the basis of the results of the investigation, the Commission will determine whether it is in the interest of the EU to eliminate the effects of unfair trade practices identified by applying anti-subsidy measures on imports of battery electric vehicles from China.”

WE WILL LOOK AT THE PLACE OF PRODUCTION, NOT THE BRAND

At this stage, the EU will examine the support and subsidies provided to electric cars produced in China and shipped to the EU, regardless of the country’s brand.

According to the rules, the EU investigation must be completed within a maximum of 13 months.

In her “State of the Union” address last month, EU Commission President Ursula von der Leyen announced that electric cars imported from China would be investigated.

Von der Leyen noted that the electric vehicle sector is a sector with great potential for Europe, saying: “Global markets are now flooded with cheaper Chinese electric cars. Chinese electric car prices are kept artificially low thanks to huge government subsidies. “This situation disrupts the functioning of our market,” he said.

ADDITIONAL CUSTOMS DUTY MAY APPLY

EU electric car manufacturers have long demanded an investigation against vehicles imported from China. As a result of this investigation, additional customs duties may be imposed on electric cars that receive subsidies from China and are shipped to EU countries.

In recent years, the share of Chinese manufacturers in electric cars sold in EU countries has increased rapidly. (AA)