A PYMNTS Company

EU Investigates Chinese Electric Vehicle Subsidies for Market Protection

By  |  September 13, 2023

The European Commission, the administrative body of the European Union, initiated an investigation into the subsidies provided to electric vehicle manufacturers in China, as revealed by President Ursula von der Leyen during her annual State of the Union address at the European Parliament in Strasbourg.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In her speech, she underscored that Europe welcomes healthy competition but is not willing to engage in a race to the bottom. This unexpected announcement introduces a new challenge in EU-China relations, following the agreement reached in late May by the United States and Europe to reduce their dependence on Beijing rather than severing ties entirely.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    During morning trading, automotive stocks in Europe remained relatively stable, erasing earlier gains of over 1%, as most sectors experienced a downturn.

    Von der Leyen emphasized the need for a clear-eyed assessment of the risks at hand before a full assembly of lawmakers. She particularly pointed out the electric vehicle industry’s significance in fostering a clean economy with substantial potential in Europe. However, she expressed concern that global markets have been inundated with competitively priced Chinese electric cars, largely due to substantial state subsidies that artificially suppress their prices.

    “This situation distorts our market, and just as we do not tolerate such distortions within our market, we will not accept them from external sources,” she asserted.

    Source: CNBC