China has slammed the EU for launching an investigation into the import of cheaper Chinese new energy vehicles (NEV), due to concerns of the programme being illegally subsidised by the state.
Chinese Backlash
China’s Ministry of Commerce (MOFCOM) said on Wednesday that the EU’s anti-subsidy probe into Chinese-made NEV “is based on subjective assumptions, lacks sufficient evidence and goes against WTO rules.”
“We express strong dissatisfaction and firm opposition to the EU decision… China will closely follow Europe’s investigative procedure and firmly safeguard the legitimate rights and interests of Chinese companies,” the MOFCOM said on its website.
According to the ministry, the EU has called for a negotiation with Beijing at an “extremely short notice” and also “failed to provide effective materials for negotiation, which has seriously infringed China’s rights.”
MOFCOM further noted that during the 10th China-EU High-level Economic and Trade Dialogue in late September, Beijing had clearly stated that the EU’s proposed probe is “blatant protectionism” that aims to protect European industries “under the guise of fair trade.”
Such moves, the ministry said, “will seriously disrupt and distort the global automotive industrial and supply chain, of which the EU has a part, and result in negative impacts on China-EU trade and economic ties.”
The #EU's anti-subsidy probe into Chinese #EVs is based on subjective assumptions, lacks sufficient evidence and goes against WTO rules, #China's Ministry of Commerce said on Wed, expressing strong dissatisfaction with the EU's decision. https://t.co/A2kEytcRO4
— Global Times (@globaltimesnews) October 4, 2023
It also urged the bloc “to exert caution in applying trade remedy measures, considering the big picture of maintaining the stability of global industrial and supply chains and the China-EU comprehensive strategic partnership.”
“The EU should encourage deepened cooperation in the new energy industry, which has NEVs as one of its spearheads, and create a fair, non-discriminatory and predictable market environment for the common development of the China-EU EV industry,” MOFCOM concluded.
EU Investigation
The backlash from China comes after the European Commission formally launched an investigation into whether it should set tariffs to protect EU producers from a “flood” of cheap Chinese imports of electric vehicles (EV), which benefit from “illegal” state subsidies.
European Commission President Ursula von der Leyen said in her announcement of the investigation that the anti-subsidy investigation will be “thorough, fair, and fact-based.”
“Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively. And we will do this in full respect of our EU and international obligations - because Europe plays by the rules, within its borders and globally,” she stated.