China: Electric car companies are not dependent on subsidies

The EU is discussing punitive tariffs on Chinese-made electric vehicles as part of an anti-subsidy probe to protect its domestic producers. The People’s Republic sees no reason for this.

According to Commerce Minister Wang Wentao, People’s Republic automakers do not need subsidies to gain a competitive advantage. In addition, accusations from the United States and the EU that there is excess capacity are unfounded. Wang made these comments in a round of talks with Chinese companies in Paris, where, among other things, he wanted to discuss China’s sales of electric vehicles in the European market.

the sea n-tv Representatives from more than ten companies, including Geely, BYD and CATL, attended the meeting. “China’s electric vehicle companies rely on continuous technological innovation, a perfect production and supply system and perfect competition in the market to develop quickly, and do not rely on subsidies to gain competitive advantages,” Wang was quoted as saying.

The EU is preparing for tariffs on Chinese electric cars

EU politicians see subsidizing Chinese manufacturers in their country as giving them an unfair advantage over other companies. In March, the EU began customs registration of Chinese imports of electric vehicles in order to be able to impose tariffs if necessary.

The European Commission is currently investigating subsidies for electric vehicles from the People’s Republic of China to determine whether tariffs are needed to protect domestic manufacturers. The investigation is expected to be completed in November, but the EU could impose temporary tariffs as early as July.

In a document published in March, the Commission said it had sufficient evidence that Chinese electric vehicles were being subsidized and that imports had increased by 14 percent year-on-year since the official launch of the investigation in October. EU producers may suffer damage that will be difficult to repair if imports from China continue at this rate pending the outcome of the investigation.

While French automakers such as Renault have little business in China and are proposing tariff exemptions, German automakers rely heavily on business in Asia. They fear retaliation from the Chinese government. “Don’t raise taxes. I have a completely different opinion, I think we should go the other way: take the taxes we have and reduce them,” said Mercedes-Benz boss Ola Källenius recently. Competition with China helps European manufacturers produce better cars in the long run.