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China criticizes the European Union for initiating an investigation into electric vehicle (EV) subsidy programs

In the official journal of the European Union, it was noted that China had been formally invited to engage in discussions regarding the bloc’s investigation into electric vehicle subsidies, although no specific date was provided. This development marked the official commencement of the EU’s probe.

On Wednesday, China expressed its dissatisfaction with the European Union’s insistence on rapid participation in talks concerning the investigation into electric vehicle subsidies. Simultaneously, the European Commission officially initiated an inquiry into the potential imposition of tariffs aimed at safeguarding its producers from what it perceives as a “flood” of lower-priced Chinese electric vehicle imports, allegedly supported by state subsidies.

China voiced its strong displeasure with the anti-subsidy investigation, asserting that it lacked adequate evidence and did not adhere to WTO regulations, as stated by the country’s trade ministry. China claimed that it had not received sufficient consultation materials and emphasized its intent to closely monitor the Commission’s inquiry procedures to safeguard its interests.

Furthermore, China urged the European Union to exercise caution in implementing trade remedies while maintaining the continuity of the global supply chain and preserving their strategic alliance.

According to data obtained by the Commission, Chinese producers have benefited from various forms of subsidies, including grants, preferential loans from state-owned banks, tax incentives, rebates, exemptions, and below-market-rate provisions of goods or services by the state, such as raw materials and components. These subsidies have facilitated the rapid increase in low-cost imports into the European Union, and it is anticipated that China’s overcapacity will lead to further increases in the near future.

According to the European Commission, China currently accounts for 8% of electric vehicles sold in Europe, and this share could increase to 15% by 2025.

The official journal granted all interested parties a 15-day window to request a hearing and allowed commenters 37 days to provide their responses.


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