Beijing Urges European Union To Stop Investigation Of Chinese Electric Cars

JAKARTA - The Chinese government urged the European Union to stop investigations into Chinese electric cars because they could risk disrupting the global supply chain.

"China urges the European Union to stop the investigation as soon as possible so as not to interfere with China-EU's economic and trade cooperation as well as the stability of the industrial and supply chains," Chinese Foreign Ministry spokesman Mao Ning told a news conference in Beijing, reported by ANTARA, Thursday, May 30.

The EU launched an anti-subsidized investigation into imports of battery-based electric vehicles (BEV) from China in October 2023 after European Commission President Ursula von der Leyen in September 2023 accused Chinese electric vehicles imported of flooding Europe and distorting the automotive market.

"If the EU insists on continuing the investigation, China will not sit still and just watch. We will take all necessary measures to firmly safeguard our rights and interests," said Mao Ning.

China, according to Mao Ning, has repeatedly stated its position regarding the EU's anti-subsidy investigation of imports of electric vehicles from China.

"Let me say that the nature of this investigation is a form of protectionism. There are many practices in the investigation that cannot be justified and are inconsistent with regulations," said Mao Ning.

The EU's accusations of what China calls subsidies are also untenable.

Previously, Chinese Trade Minister Wang Wentao, at a round table meeting in Paris on April 7, 2024, said that the rapid development of Chinese electric vehicle manufacturing was the result of sustainable technological innovation, established supply chain systems, and full market competition, not subsidies.

The European Union plans to also impose an import rate on Chinese electric vehicles but the implementation is postponed after the European Parliament election on June 9, 2024.

The interim rate, which was originally to be announced on June 5, 2024, will be a huge surprise representing new costs of billions of dollars for Chinese electric car manufacturers but has been postponed due to the European Parliament election on June 6-9, 2024.

The tariff was applied as a result of an official investigation launched on October 4, 2023 and could take up to 13 months. The European Commission can impose temporary anti-subsidized duties nine months after the start of the investigation.

The European Commission has also warned China's three electric vehicle manufacturers that they have not provided sufficient information for an anti-subsidized investigation.