HONG KONG. China’s Commerce Ministry has voiced its objection to the European Union’s decision to investigate Chinese electric vehicle (EV) exports, branding it a “protectionist” measure that distorts the supply chain.
The EU officially announced its investigation on Wednesday, focusing on government subsidies provided to Chinese automakers, which, according to the EU, artificially lower EV prices. China has emerged as the world’s largest market for electric vehicles, driven by substantial investments in subsidies. Automakers such as BYD and Geely have rapidly expanded their market presence by introducing EVs to Japan and Europe.
He Yadong, the spokesperson for China’s Commerce Ministry, expressed his concerns during a briefing in Beijing, saying, “What I want to emphasize is that the investigation measure that the European Union plans to take is to protect its own industry in the name of fair competition.”
He further criticized the move, labeling it “naked protectionist behavior” that would disrupt and distort the global automotive and supply chain, including within the European Union, with potentially negative consequences for China-EU economic and trade relations.
The Ministry issued a statement, urging the EU to establish a “fair, non-discriminatory, and predictable” market environment.
In China, electric vehicle prices can start as low as 100,000 yuan ($14,500) for a compact SUV with a 400-kilometer (250-mile) range on a single charge.
Cui Dongshu, head of the China Passenger Car Association, also voiced opposition to the investigation on his WeChat social media account. He highlighted China’s competitive industrial chain and noted that new energy subsidies had been phased out in 2022.
Cui urged the EU to adopt an “objective view of the development of China’s electric vehicle industry” instead of resorting to economic and trade tools that could raise the costs of Chinese electric vehicles in Europe.
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