According to a German report, BYD would receive billions of euros in aid from China

According to a German report, BYD would receive billions of euros in aid from China

We already know that many Chinese brands are being investigated by the European Union for alleged illegal funding by the central government in Beijing with the specific aim of undermining European competition. In this context, a report appears that would show BYD as one of the most involved brands.

This new development would suggest that there has been “significant financial support” received by BYD from Geely and SAIC. This financial support, which amounts to figures of millions of dollars, could be very questionable the principle of competition which the European Union has established and which it intends to maintain at all costs, for the benefit of consumers.

Although government aid to car manufacturers is considered legal, the use of public money from citizens’ taxes raises ethical questions, especially when it is aimed at supporting the competitiveness of Chinese brands in the European electric car market. A German report would reveal that BYD may have received up to 3.4 billion euros in subsidies and the Chinese government between 2020 and 2024, fueling concerns about transparency and fairness in international trade.

This financial support supports the strategy of Chinese brands to establish themselves in the European electric car market, but raises questions about fair competition, especially considering the large price differences compared to similar models from other manufacturers. If proven, these grants can clearly represent competitive advantage for BYDallowing it to quickly gain ground in the European and international electric vehicle market.

However, it remains to be seen how regulators will respond and what steps will be taken to ensure fair competition in the automotive industry, especially in the context of increasing the transition towards green vehicles and sustainable. In this regard, even before the investigation leads to certain results, it seems that the European Union has decided to act early by increasing customs duties on Chinese electric cars, bringing them from 10 to 20%. In the United States this amount is currently 27%.