Beijing expressed opposition on Wednesday to a request by the European Union to discuss in a “very short” time the bloc’s inquiry into Chinese subsidies for electric vehicles.
Its comment came as the European Commission formally launched an investigation on whether to set tariffs to shield its producers from a “flood” of imports of cheaper Chinese electric vehicles (EVs) that Europe says benefit from state subsidies.
China’s commerce ministry said it was “very much dissatisfied” with the anti-subsidy investigation as it lacked adequate evidence and did not conform with World Trade Organization rules.
The Chinese side complained that it had not been given adequate consultation materials, saying it would pay close attention to the Commission’s investigative procedures so as to safeguard the rights and interests of its firms.
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China also urged the European Union to safeguard the stability of the global supply chain and a strategic partnership between the two, while “prudently” applying trade remedies.
The formal launch of the EU investigation came with an announcement in the bloc’s official journal, which said China had been invited for consultations, although it did not give a timeframe.
Carmakers ‘aided by grants, state loans, tax cuts’
Information gathered by the Commission tended to show that producers in China benefitted from subsidies to the detriment of EU industry, it added.
It enumerated these as being in the form of grants, loans from state-owned banks on preferential terms, tax cuts, rebates and exemptions and state provision of goods or services, such as raw materials and components, at less than adequate prices.
It said subsidies had allowed a rapid rise of cheap imports into the European Union, with expected overcapacity in China likely to lead to further increases in the near future.
The European Commission has said China’s share of EVs sold in Europe has risen to 8% and could reach 15% in 2025.
The journal advised all parties wanting a hearing to request one within 15 days, and set a deadline of 37 days to receive comments.
- Reuters with additional editing by Jim Pollard
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