The EU is aiming for state support for Chinese electric cars. European Commission President Ursula von der Leyen today announced an anti-subsidy investigation into vehicles originating from China.
“The price of these cars is artificially depressed by huge government subsidies – this distorts our market,” she said. This is not acceptable. World markets would be flooded with cheaper Chinese electric cars.
Possible punitive tariffs
An anti-subsidy investigation could lead, for example, to the imposition of punitive tariffs. In the past, the EU has already introduced anti-dumping duties on solar panels from China, among other things.
Europe is open to competition, but not to an unequal race to the bottom, explained von der Leyen. “We must defend ourselves against unfair practices.”
At the same time, he emphasized that it was essential to maintain dialogue with China. There are issues we need to work on together. At an EU-China summit planned for this year, she will take the position that risks must be minimized, but not decoupled.