EU Urges China to Address Overcapacity in Electric Vehicle Industry

In a recent statement, European Commission President Ursula von der Leyen emphasized the importance of the European Union (EU) investigating Beijing’s state subsidies in the electric vehicle (EV) industry. Von der Leyen expressed concerns over China’s economic downturn and warned against a “race to the bottom” in the green tech transition.

The European Commission president stressed that while Europe is open to competition, it cannot tolerate a situation where a race to the bottom negatively impacts the market. She assured that the EU would approach China with good faith and would not hesitate to raise concerns.

Von der Leyen specifically highlighted the issue of overcapacity in China’s EV market, noting that it would lead to the exportation of excess products. The meddling of direct and indirect subsidies exacerbates this situation. As China’s economy slows down and domestic demand remains stagnant, the impact on the global market becomes more pronounced.

The EU-China Summit, scheduled for December 7-8, will provide an opportunity for discussion on these matters. Von der Leyen, along with European Council President Charles Michel, is expected to meet with Chinese President Xi Jinping. However, China has expressed concerns over the EU’s investigation, fearing disruptions in the global supply chain.

Von der Leyen’s remarks on China’s military posture were also noteworthy. She highlighted China’s assertive actions in Taiwan, the South China Sea, and the East China Sea, emphasizing that these actions not only affect neighboring countries but also have global economic consequences.

The European Commission president underlined the importance of addressing China’s relationship with Russia. It is crucial to limit China’s support for Russia, and the way China positions itself in this regard will determine the future of the mutual relationship between the EU and China.


Q: What is the main concern raised by Ursula von der Leyen regarding China’s electric vehicle industry?
A: Ursula von der Leyen is concerned about the overcapacity in China’s electric vehicle industry and the potential exportation of excess products due to direct and indirect subsidies.

Q: When is the EU-China Summit scheduled to take place?
A: The EU-China Summit is scheduled to occur from December 7 to December 8.