China firmly opposes EV probe by EU

Move lacks evidence, not in line with WTO rules, Commerce Ministry says

The Ministry of Commerce expressed strong dissatisfaction on Wednesday over the European Union's anti-subsidy investigation into electric vehicle imports from China, saying the move lacks sufficient evidence and is inconsistent with relevant World Trade Organization rules. The EU, which had announced its probe decision last month, formally launched the investigation on Wednesday.

In response, the ministry said in a statement on its website that the EU had asked China to negotiate within a very short period of time but failed to provide "effective materials" for negotiations, which severely damaged the interests of China.

China urges the EU to maintain the stability of global industrial and supply chains and the China-EU comprehensive strategic partnership, as well as use trade remedy measures prudently, the ministry said. China also encourages deepening cooperation in the new energy industry, represented by EVs, to create a "fair, nondiscriminatory and predictable" market environment for the common development of the China-EU EV industry, it said. The ministry added that China will pay close attention to the EU's follow-up investigation procedures and firmly safeguard the legitimate rights and interests of Chinese companies.

Bai Ming, deputy director of international market research at the Chinese Academy of International Trade and Economic Cooperation in Beijing, called the EU's probe "an act of trade protectionism, which will jeopardize the global automotive industrial and supply chains, and wreak havoc on China-EU economic and trade relations".

Highlighting the EU's investigation as totally "groundless and unfair", Bai attributed the rapid development of China's EV industry to Chinese carmakers' continuous efforts in bolstering technological innovation and the country's relatively complete auto industrial chains.

Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, said that China and the EU have close and extensive cooperation in the automotive industry, and many EU auto companies have operated in China for many years. The EU's latest move will not only affect Europe's EV imports from China, but it may also hurt the interests of EU companies in the long run, Tu added.

According to the China Association of Automobile Manufacturers, the country exported 727,000 new electric vehicles in the first eight months, a year-on-year increase of 110 percent. Europe and Southeast Asia are two major export destinations for Chinese NEV makers.

Cui Dongshu, secretary-general of the China Passenger Car Association, said the EU should take an objective view on the development of China's EV industry instead of using unilateral economic and trade tools, which obstruct the growth of the segment and increase operational costs of Chinese EVs in the European market.

Cui firmly opposed the EU's anti-subsidy probe, emphasizing that China's NEV exports are growing rapidly due to a highly competitive industrial chain under sufficient market competition, and not because of the so-called "government subsidies".