BRUSSELS – The European Union is launching an investigation into subsidies that China supplies to electric car makers, the top of the bloc’s govt department mentioned Wednesday, as fear grows that the help is harming European firms.
“Global markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies. This is distorting our market,” European Commission President Ursula von der Leyen instructed EU lawmakers in Strasbourg, France.
“As we do not accept this distortion from the inside in our market, we do not accept this from the outside,” von der Leyen mentioned. “So, I can announce today that the commission is launching an anti-subsidy investigation into electric vehicles coming from China.”
China’s leaders have helped make the rustic the largest marketplace for electric vehicles through making an investment billions of greenbacks in subsidies to get an early lead in what’s observed as a promising business.
Global automakers face rising pageant of their house areas from Chinese manufacturers which might be taking marketplace proportion.
Electric car makers together with BYD Auto and Geely Group’s Zeekr unit started gross sales this 12 months in Japan and Europe. Geely additionally owns Sweden’s Volvo Cars and its all-electric luxurious emblem, Polestar.
“Europe is open to competition but not for a race to the bottom. We must defend ourselves against unfair practices,” von der Leyen mentioned. She didn’t supply information about the investigation.