Boom of Chinese electric vehicles in Europe. EU Commission investigation that speaks of “illegal subsidies” from Beijing
Brussels has formally launched an investigation into the powerful subsidies that the Chinese state gives to the domestic electric vehicle industry. According to the EU Commission, Chinese producers in the sector benefit from subsidies so massive as to put European industry in serious difficulty. There would be state aid, grants, loans from state banks on preferential terms, tax cuts, discounts and exemptions, and state supplies of goods or services, such as raw materials and components, at lower prices to those of always.
It is not clear whether alongside, along the lines of what happened in the recent Qatargate, some MEPs and lobbyists accused of having received money and gifts in exchange for supporting Qatar’s interests, there are also judicial investigations in Brussels to verify possible contacts between EU parliamentarians and Beijing lobbies. The EU Commission speaks openly on its website about “illegal subsidies”.
“If the conditions under investigation,” explains the Commission, “prove to be true, we will move towards examining the likely consequences and impact of the measures on importers, users and consumers of battery electric vehicles in the EU. Based on the survey results, The Commission will determine whether it is in the EU’s interest to remedy the effects of the identified unfair trading practices by imposing anti-subsidy duties”.
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The official EU website also writes: “Although no formal complaint has been received from the European industry to initiate proceedings, EU anti-subsidy rules require the European industry to be asked to cooperate in the ex-officio investigation . In accordance with legal requirements under EU and WTO rules, preliminary consultations with the Chinese government were held before the publication of the notice of initiation.”
The People’s Republic of China for its part, last Wednesday, harshly complained about the EU investigations. For the Chinese they would be missing adequate evidence to demonstrate what the EU claims and that Beijing has violated the rules of the World Trade Organization.
The Chinese party invited to the consultation believes that it has not received sufficient documentation to be able to adequately defend itself. China also urged the EU to safeguard the stability of the global supply chain and defend the strategic partnership between the two worlds, “prudently” applying commercial remedies. In a statement posted on its official account, WeChat, on Wednesday evening, the China Association of Automobile Manufacturers (CAAM) called the investigation an “obvious act of protectionism” that would hinder the growth of the global electric vehicle industry.
Meanwhile in July in Europe there was a boom in Chinese cars with a jump in sales of +131%. In August, the 22 Chinese brands present on the European market they sold around 25,500 new cars, 131% more than the number recorded in the same period of the year 2022. The Chinese electric vehicle market went from 1.27% to 2.51%. A new trend that makes one think of important movements in Beijing. As regulations in the sector remain lax and as it has become a priority for the European automotive industry to invest in electric vehicles, many brands are taking advantage of the market situation.
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