The executive branch of the European Union announced on Wednesday that it is opening an investigation into Chinese subsidies given to manufacturers of electric vehicles amid growing worries that the assistance is hurting European firms.
“Chinese electric vehicles are now widely available at lower prices on the world market, and significant state subsidies maintain these artificially low prices. Ursula von der Leyen, president of the European Commission, told EU parliamentarians in Strasbourg, France, that this was distorting our market.
Von der Leyen stated, “We do not accept this distortion from the outside, just as we do not accept this distortion from within our market.” “So, I can now officially announce that the commission has begun an anti-subsidy investigation into Chinese-made electric vehicles.”
China’s officials have invested billions of dollars in subsidies to get an early advantage in what is thought to be a promising industry, making their nation the largest market for electric vehicles.
Chinese companies are stealing market share from domestic automakers, putting them under increasing pressure.
This year saw the launch of electric vehicle sales in Europe and Japan, including by BYD Auto and the Zeekr division of the Geely Group. In addition, Geely owns Polestar, an all-electric premium brand, and Volvo Cars of Sweden.
Europe welcomes competition, but not a bottom-up approach. Von der Leyen added, “We must protect ourselves against unjust practices. She made no mention of the investigation’s specifics.
