China ‘car investigation’ warning to Europe

The Chinese government criticized the EU’s anti-subsidy investigation into China’s electric car industry and warned it would have a negative impact on relations.

Beijing criticized the European Commission’s launch of an investigation into China’s electric vehicle subsidies. As shares of Chinese automakers fell, Beijing warned that this situation would damage economic and trade relations.

According to the investigation announced yesterday by European Commission President Ursula von der Leyen, the commission accused China of filling world markets with electric cars at artificially low prices thanks to large state subsidies.

While the investigation claimed China was an attempt to disrupt fair competition, Leyen also started perhaps one of the most serious trade wars with Beijing.

CONDEMNATION FROM BEIJING

China’s Ministry of Commerce said in a statement that the investigation “is a protectionist action that will seriously disrupt the global automotive industry and supply chain, including the EU, and will have a negative impact on economic and trade relations between China and the EU”.

“China will pay close attention to the EU’s protectionist tendencies and follow-up actions, and strictly protect the legitimate rights and interests of Chinese companies,” the statement said.

China’s Ministry of Commerce said: “EU automotive companies have been investing and operating in China for many years. “The Chinese market has become the largest foreign market for many EU car companies.”

The ministry added that China’s electric vehicle industry has achieved its competitiveness through hard work, is preferred by consumers, including the EU, and has made significant contributions to the fight against climate change and green transformation, including the European Union.

CHINA’S PARTICIPATION IS INCREASING

China’s electric vehicles still represent only a small part of the EU market, but this figure is growing rapidly and is estimated to reach 15 percent within two years.

The rapid rise of these companies has raised concerns in the EU, where the solar panel market was dominated by Chinese manufacturers more than a decade ago.