Beijing Blasts EU Probe into Chinese Subsidies for EVs

Beijing Blasts EU Probe into Chinese Subsidies for EVs

The European Union’s newly announced investigation into China’s state support for makers of electric vehicles (EVs) was blasted by Beijing on Thursday as naked protectionist behaviour.

The European Union opened a probe into China’s subsidies for electric vehicle makers, amid concerns the payments are harming European companies. “Global markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies. This is distorting our market,” European Commission President Ursula von der Leyen told EU lawmakers on Wednesday.

Reacting to the development, China expresses its concern and strong dissatisfaction over this,’’ a spokesman for the Commerce Ministry said. The spokesperson added that the probe would hurt relations.

“China believes that the EU’s proposed investigative measures are to protect its industry in the name of ‘fair competition.

“The naked protectionist behaviour will seriously disrupt and distort the global automotive industry supply chain,’’ he said.

Leyen announced on Wednesday an anti-subsidy investigation into cheap Chinese electric vehicles that she said were flooding global markets. The investigation can potentially lead to punitive duties being imposed on imports to the EU, policy analysts said.

Different efforts are currently underway in several EU economic sectors to reduce the bloc’s dependence on imports from countries like China or Russia and to protect domestic companies.

The Commerce Ministry in Beijing emphasised the long-standing relations between Europe and China in the automotive sector. China’s car industry has grown rapidly and become more competitive as a result of technological innovations, it said.

Meanwhile, some EU member states, including Germany, are wary of angering Beijing, since they rely on trade relations with China, although Berlin welcomed the probe Wednesday.

#Beijing Blasts EU Probe into Chinese Subsidies for EVs Naira Devaluation Deepens Economic Crisis in Nigeria

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