The European Union has launched an anti-subsidy investigation into Chinese EVs

The European Commission isn’t happy about the number of cheaper Chinese-made electric vehicles (EVs) coming onto the continent. It’s launched an investigation to understand whether Chinese-state subsidies are undercutting European car makers.

In the 2023 State of the Union address, European Commission President Ursula von der Leyen stated that "global markers are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies".

Von der Leyen reminded the audience of the time China’s ‘unfair trade practices’ affected Europe’s solar industry. Worried that "pioneering companies had to file for bankruptcy" and skilled workers headed overseas looking for work, the Commission has launched its investigation.

There's been a fair bit of pressure on the Commission to do something about the threat from Chinese companies for some time. Back in October 2022, Stellantis boss Carlos Tavares shared his concerns. He said: "The Chinese industry might be making cars at a loss. And then they will raise prices after the European carmakers go out of business."

Von der Leyen reaffirms the need for ‘fairness’. According to Reuters, the 13-month investigation will determine whether higher import taxes should be applied to counter the subsidies.

Image credit: Avel Shah