The European Commission is launching an anti-subsidy investigation into electric vehicles from China. Ursula von der Leyen, President of the European Commission, stated today that the Commission will begin examining subsidies for Chinese electric vehicle manufacturers from Wednesday onwards. Actions must be taken within 13 months after the initiation of the anti-subsidy investigation, interim measures must be implemented within 9 months, and if legally permissible, final measures should be taken within 4 months.
Von der Leyen commented that the global car market is flooded with low-priced Chinese electric vehicles due to substantial state subsidies, which allows for their prices to be incredibly low. Electric vehicles have immense potential in Europe, but Chinese electric vehicles have distorted the European market. "We do not accept distortions from within the market, nor those from outside. While Europe remains open to competition, it does not condone a race to the bottom. The EU must protect itself from unfair practices, yet we will maintain open communication with China. What the EU needs is to de-risk, not decouple."
