Chinese officials have hit out at European regulators after it was revealed that the European Commission is opening a probe into Chinese-made electric vehicles flooding the local market.
European Commission President Ursula von der Leyen asserts that state subsidies in China have allowed carmakers to keep their EV prices artificially low. The probe could lead to tariffs being applied to EVs built in China and sold in Europe, leading to a fierce response from China’s Ministry of Commerce.
“(The investigation) is a naked protectionist act that will seriously disrupt and distort the global automotive industry and supply chain, including the EU, and will have a negative impact on China-EU economic and trade relations,” the ministry said. “China will pay close attention to the EU’s protectionist tendencies and follow-up actions, and firmly safeguard the legitimate rights and interests of Chinese companies.”
Read: EU Considers Tariffs To Stop Chinese EV Invasion And Protect Its Automakers
The top official for China’s European affairs, Wang Lutongm took to X to express his frustration at the investigation, noting that there are plenty of countries in Europe that also subsidize electric vehicles.
“According to info from ACEA_auto, many EU members subsidize their #ElectricVehicle industries,” he wrote. “In what position is EU_Commission to launch anti-subsidy investigation into electric vehicles from #China? This is nothing but sheer protectionism.”
Officials believe that Chinese EVs are undercutting locally produced models by roughly 20% and assert they could account for 15% of all EVs sold in Europe in 2025.
Speaking with Reuters, Mercedes-Benz says protectionist measures would be counterproductive while Bosch added that potential punitive tariffs and trade barriers would only have losers. Analysts also note that any tariffs the EU may levy on Chinese-made EVs would likely lead to retaliatory action from Beijing.
Earlier this week, China revealed that it will continue to impose anti-subsidy duties on potato starch imports from the European Union for the next five years, South China Morning Post reports.
