EU probe into Chinese electric vehicle subsidies stirs debate over ‘unfair’ treatment
- An affiliate of China’s state broadcaster accused Brussels of breaking WTO rules, but critics say state support is distorting the market
The European Union’s decision to increase tariffs on Chinese electric vehicles has triggered a debate about whether the country is being unfairly singled out.
China is not alone in subsidising its domestic industry, but critics say the scale of its subsidies sets it apart. However, one Chinese economist defended state support for EVs, saying Brussels has not understood the thinking behind them.
Trade tensions between the two sides escalated this month after the EU announced punitive tariffs of up to 38 per cent on electric vehicles imported from China, claiming Beijing’s “unfair” subsidies had led to overcapacity, which distorted the market and damaged EU firms.
Beijing dismissed the accusations and hit back with an anti-dumping probe into EU pork imports.
It said over the past decade the EU has launched anti-subsidy probes that went beyond direct government subsidies to other areas such as land, loans and electricity supplies.