China Defends EV Industry Amid European Investigation

2

China-EU EV Dialogue Commences

Chinese Commerce Minister Wang Wentao initiated a crucial visit to Europe by meeting executives from leading Chinese automakers BYD, CATL, and Geely in Paris. This move comes as the European Union (EU) intensifies its investigation into alleged unfair subsidies provided to China’s electric vehicle (EV) industry.

Minister Wang convened a roundtable discussion with representatives from over ten companies, emphasizing China’s position that its EV businesses thrive due to technological advancements, robust supply chains, and competitive market dynamics, not government handouts. He dismissed accusations of overcapacity from the United States and Europe as unfounded.

“Chinese automakers rely on sustained innovation, supply chain excellence, and fierce market competition to drive their growth, not subsidies,” declared Minister Wang.

China Defends Its EV Industry

The Chinese government, Wang assured, would vigorously support its companies in protecting their legal rights. Sources close to Wang’s delegation disclosed that discussions during the tour would primarily focus on the ongoing EU probe. Started in late 2023, the investigation aims to assess if tariffs should be imposed on Chinese EV exports to protect European manufacturers.

China has a pronounced edge over European companies in developing low-cost EV models. The EU’s investigation is expected to conclude by November, but provisional duties could be implemented sooner.

Sino-European Engagement

Later on Sunday, Minister Wang scheduled a meeting with Luca de Meo, Renault’s CEO and interim European Automobile Manufacturers’ Association Chairman. He was also expected to attend a dinner with cosmetics industry executives.

On Monday, French Finance Minister Bruno Le Maire is set to hold talks with Wang.

Global Concerns over Chinese Industrial Capacity

Wang’s European visit comes as U.S. Treasury Secretary Janet Yellen raises global apprehensions about China’s surplus industrial capacity during her visit to the country. Yellen expressed concern that this excess capacity could harm China’s economy and adversely affect producers elsewhere.

Data sourced from: cnbc.com