EU to Open Anti-Subsidy Investigation on Chinese Electric Vehicles

The EU will open a countervailing duty investigation on electric vehicles from China, European Commission President Ursula von der Leyen said during her 2023 state of the union address to the European Parliament. The bloc "must defend" itself "against unfair practices," including Chinese state subsidies that keep its electric vehicles at artificially low prices, von der Leyen said. She also clarified that the EU's policy is one of "de-risk" and not decoupling, insisting that open lines of communication will remain open with Chinese leadership.

In response, China's Ministry of Commerce said that the proposed investigation is a "naked protectionist act" that will disrupt the global automotive industry supply chain and have a "negative impact on China-EU economic and trade relations," according to an unofficial translation.