China Criticizes EU’s Hastily Requested Consultations Over EV Subsidy Probe: A Closer Look

China has expressed its dissatisfaction with the European Union (EU) over the launch of a formal inquiry into subsidies for electric vehicles (EVs). The Chinese government argues that the EU’s anti-subsidy investigation lacks sufficient evidence and does not align with World Trade Organization rules. This article delves into China’s response and highlights the potential implications of the probe.

China’s Complaints:
The Chinese commerce ministry issued a statement expressing strong discontent with the EU’s approach. China claims that it has not been provided with adequate consultation materials and emphasizes the importance of upholding the rights and interests of its firms. Furthermore, China urges the EU to preserve the stability of the global supply chain while prudently applying trade remedies.

Opposition to Protectionism:
The China Association of Automobile Manufacturers (CAAM) referred to the investigation as an “obvious act of protectionism” that would hinder the growth of the global EV industry. CAAM argues that such actions are detrimental to the strategic partnership between China and the EU.

EU’s Allegations:
The European Commission, in its formal launch of the investigation, presents information suggesting that Chinese producers benefit from a range of subsidies that harm EU industries. These subsidies include grants, preferential loans from state-owned banks, tax cuts, rebates, and state-provided goods and services at below-market prices. The Commission highlights the rapid increase of cheap imports from China and points to the potential for overcapacity in the near future.

Timeline and Next Steps:
The EU has invited China for consultations, although the timeframe for these talks has not yet been specified. Parties interested in a hearing have been advised to request one within 15 days, with a deadline of 37 days set to receive comments.

Implications:
The outcome of this probe could have significant consequences for the global EV industry and the trade relationship between China and the EU. As China’s share of EVs sold in Europe grows, the EU aims to investigate and potentially impose tariffs to protect its domestic producers. However, China’s criticism signals potential trade tensions and calls into question the validity of the investigation under WTO rules.


China has objected strongly to the EU’s actions regarding the investigation into subsidies for Chinese EVs. The EU’s allegations raise concerns about unfair trade practices and potential overcapacity. The outcome of this probe will have far-reaching implications for the EV industry and the trade relationship between the EU and China. As the situation unfolds, it remains to be seen how both parties will navigate their differences and find a resolution that balances their respective interests

Source: https://www.usnews.com/news/technology/articles/2023-10-04/china-rebukes-eus-rushed-request-for-consultations-over-ev-subsidy-probe

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