Europe accuses China of “excessive” state subsidies
The European Commission began the investigation last week after considering that Chinese state subsidies for electric cars have put at risk disadvantage to the region’s automobile manufacturers in the market for zero-emission units.
It will be investigated whether, to protect European automakers, it is necessary to impose punitive tariffs against Chinese imports of electric vehicles cheaper which, according to Ursula Von Der Leyen, president of the Commission, benefit from “excessive” state subsidies.
“World markets are now flooded with electric cars cheap chinese. And its price is kept artificially low by huge state subsidies,” he declared before the European Parliament in Strasbourg. “Europe is open to competition. No to a race to the bottom,” he added.
Following the statements, the European Automobile Manufacturers Association (ACEA) supported the announcement of the investigation and considered it “a positive sign.”
For the members of the organization, “The European Commission recognizes the increasingly asymmetric situation that our industry faces” due to subsidies from the Asian giant.
Due to the above, Sigrid de Vries, director general of the ACEA, supported that the Commission is “urgently addressing the distortions of competition in our sector,” he added.