China warns ties could be harmed by EU's "unfair" investigation into EV subsidies

In a recent interview, China’s envoy to the EU, Fu Cong, referred to the EU’s investigation into Chinese electric car producers regarding state subsidies as “unfair”. China is assisting the EU investigation, according to Fu, “because we do want to avoid a situation that the two sides will have to resort to trade measures against each other,” Bloomberg reported. The EU subsidises many of its own companies, the ambassador told Bloomberg, adding that “there are many things that could be subject to investigation” if China adopted the same strategy as the bloc. Last year, the European Commission launched an investigation into whether to impose punitive tariffs to protect European Union producers against cheaper Chinese electric vehicle (EV) imports it says are benefiting from state subsidies. Earlier this month Reuters reported that European Commission investigators are to inspect Chinese automakers in the coming weeks as part of a probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers. The inspectors will visit BYD, Geely and SAIC, two sources told Reuters. Tensions between China and the EU have been growing, partly due to Beijing’s closer ties with Moscow after Russia’s invasion of Ukraine. The EU is seeking to reduce its reliance on the world’s second-largest economy, particularly for materials and products needed for its green transition. (with inputs from Reuters)