China’s Response to EU’s Probe on Electric Vehicle Manufacturers

China’s response to the European Union’s (EU) probe into Chinese electric vehicle (EV) manufacturers has been deemed as “unfair” by the country’s ambassador to the EU, Fu Cong. In an interview with Bloomberg News, Fu expressed his dissatisfaction with the investigation, stating that China is cooperating with the EU to avoid resorting to trade measures against each other.

Fu highlighted the EU’s own subsidies to its companies, emphasizing that if China adopted a similar approach, it would result in numerous investigations. The European Commission launched the probe last year, aiming to impose punitive tariffs on Chinese EV imports benefiting from state subsidies which allegedly pose a threat to EU producers.

To further investigate this matter, European Commission investigators are planning to inspect Chinese automakers, including BYD, Geely, and SAIC. This move is part of the ongoing investigation to evaluate if punitive tariffs are necessary to protect European EV makers. However, tensions between China and the EU have been escalating due to Beijing’s growing ties with Moscow after Russia’s invasion of Ukraine. As a result, the EU is attempting to reduce its reliance on China, particularly for materials and products necessary for its green transition.

China’s response to the EU’s probe emphasizes its displeasure with the investigation, citing it as unfair. The country acknowledges the need for cooperation to prevent further trade measures, but questions the EU’s own practices regarding subsidies. As tensions continue to rise between China and the EU, the outcome of the investigation and its potential implications on the EV industry remain uncertain.

FAQ:

1. What is the European Union’s (EU) probe into Chinese electric vehicle (EV) manufacturers?
The EU launched a probe to investigate Chinese EV manufacturers benefiting from state subsidies, with the aim of imposing punitive tariffs on imports that could potentially harm EU producers.

2. Why does China consider the EU’s response unfair?
China’s ambassador to the EU, Fu Cong, believes that the EU’s probe is unfair because it does not acknowledge the subsidies provided by the EU to its own companies. He states that if China adopted a similar approach, it would result in numerous investigations.

3. Which Chinese automakers are going to be inspected by European Commission investigators?
European Commission investigators plan to inspect Chinese automakers such as BYD, Geely, and SAIC as part of their ongoing investigation to determine whether punitive tariffs are necessary to protect European EV makers.

4. What are the tensions between China and the EU related to?
Tensions between China and the EU have been escalating due to China’s growing ties with Russia after Russia’s invasion of Ukraine. The EU is attempting to lessen its reliance on China for materials and products needed for its green transition.

5. What is the potential outcome of the investigation and its implications on the EV industry?
The outcome of the investigation and its potential implications on the EV industry remain uncertain as tensions continue to rise between China and the EU.

Definitions:

– Electric vehicle (EV): A vehicle that is powered by an electric motor and uses electrical energy stored in batteries or another energy storage device.
– Subsidies: Financial assistance or incentives provided by the government to support certain industries, businesses, or activities.

Related Links:

Bloomberg News
European Commission