China slams European Union over EV subsidy probe launch

On Wednesday, China expressed displeasure at the European Union’s insistence that Beijing participate in talks on the bloc’s investigation into electric vehicle subsidies within a “very short” period of time. The comments were made at the same time that the European Commission formally began an investigation into whether to impose tariffs to protect its producers from an alleged “flood” of lower-priced Chinese electric vehicles (EV) imports that are said to be supported by state subsidies. China was “very much dissatisfied” with the anti-subsidy inquiry, though, because it lacked sufficient proof and did not follow WTO regulations, according to a statement from the country’s trade ministry. It claimed that the Chinese side had not received sufficient consultation materials and that it would closely monitor the Commission’s inquiry procedures to protect its interests. Additionally, China urged the European Union to “prudently” implement trade remedies while preserving the continuity of the global supply chain and their strategic alliance. An publication in the official journal of the bloc stating that China had been asked for discussions but providing no date signalled the official start of the EU probe. According to data acquired by the Commission, Chinese producers benefited from subsidies to the detriment of EU industry. These were listed as grants, preferential loans from state-owned banks, tax breaks, rebates, and exemptions, as well as state provision of goods or services, such as raw materials and components, at below-market rates. According to the report, subsidies have facilitated the quick rise in low-cost imports into the European Union, and it was predicted that China’s overcapacity would soon lead to additional rises. According to the European Commission, China now accounts for 8% of EVs sold in Europe and might account for 15% by 2025. The journal gave all interested parties 15 days to request a hearing, and it gave commenters 37 days to respond. (With agency inputs)