BYD’s well priced Atto is leading its export charge into multiple export markets with local build planned for Asia

China’s ministry of commerce has expressed its strong dissatisfaction with the European Union’s (EU) announcement last month it planned to launch an investigation into government subsidies for electric vehicles (EVs) entering its markets.

EU president Ursula von der Leyen in a state of the union address at the European Parliament in Strasbourg last month announced an investigation would be launched into state subsidies provided to Chinese EV manufacturers, fearing EU based vehicle manufacturers would be undermined by the artificially low prices of Chinese EVs.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

During her speech she said: “The electric vehicle sector is a crucial industry for the clean economy with a huge potential in Europe but global markets are now flooded with cheaper Chinese electric cars and their prices are kept artificially low by huge state subsidies.”

The subsidy investigation was formally launched this week.

The probe is seen in China “an act of trade protectionism” which could disrupt the global automotive industry and related supply chains and greatly damage China/EU economic and trade relations.

See Also:

European vehicle manufacturers and suppliers, particularly German companies, have invested heavily in China over the last two decades and are increasingly using their operations in the country as an export base including shipments to the EU.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

China, which has stepped up its vehicle exports over the last year, said the move by the EU lacks sufficient evidence and is inconsistent with relevant World Trade Organisation (WTO) rules. The ministry claimed on its website the EU had asked China to negotiate at very short notice but had failed to provide “effective materials” for negotiations. It claims the probe has “severely damaged the interests of China”.

The Chinese government said it is once again urging the EU to prudently maintain stability of global industrial and supply chains and the China/EU comprehensive strategic partnership, including the use of trade remedy measures. It said it encourages deepening cooperation in the new energy vehicle (NEV) industry to create a “fair, non-discriminatory and predictable” market environment for the common development of the China/EU EV industry.

The ministry said it will pay close attention to the EU’s follow up investigation procedures and will firmly safeguard the legitimate rights and interests of Chinese companies.