On Thursday, the Chinese Ministry of Commerce issued a warning that the European Commission’s probe into Chinese electric cars that are thought to have benefitted from state subsidies would have a “negative” effect on economic and trade relations between the two countries.
The inquiry initiated on Wednesday will examine whether or not it is necessary to impose punitive tariffs to safeguard EU manufacturers against what President Ursula von der Leyen of the European Commission referred to as a “flood” of cheaper electric vehicle imports from China.
“China believes the investigative measures proposed by the European Union are in reality to protect its own industry in the name of ‘fair competition,'” the commerce ministry said in a statement. “China believes the European Union is protecting its own industry by proposing these investigative measures.”
“It is a naked protectionist act that will seriously disrupt and distort the global automotive industry and supply chain, including the EU, and it will have a negative impact on China-EU economic and trade relations.” “It will seriously disrupt and distort the global automotive industry and supply chain.”
The investigation, which was started by the European Commission and not in response to a complaint from the sector, would further aggravate an already fragile relationship with China, which disparities in trade and investment have partially stressed.
According to figures from Chinese customs, the value of China’s exports to the EU in 2022 increased by 8.6%, reaching a total of $562 billion. However, imports from the EU decreased by 7.9%, reaching $285 billion. This resulted in a substantial increase in the trade imbalance between the EU and China for the second consecutive year.
