China criticizes EU following formal launch of EV subsidy probe

China raised concerns on Wednesday about the very limited time it was given by the European Union for talks regarding the EU's investigation into subsidies for electric vehicles.

These comments came as the European Commission officially started looking into whether to impose tariffs to shield EU manufacturers from a flood of cheaper Chinese electric vehicles that are believed to benefit from state subsidies.

The Chinese Ministry of Commerce cited a lack of sufficient evidence and non-compliance with World Trade Organization rules as reasoning for their dissatisfaction in a statement.

The minister pointed out that China has not received the necessary consultation materials and emphasized their intention to closely monitor the investigative procedures of the Commission to protect the rights and interests of Chinese companies.

Late on Wednesday, the China Association of Automobile Manufacturers (CAAM) released a statement on its official WeChat account, characterizing the investigation as an "obvious act of protectionism". The association claimed that this probe would obstruct the expansion of the global EV industry.

The formal launch of the EU investigation was officially announced in the bloc's official journal, which said that China had been extended an invitation for consultations, though no specific timeframe for these discussions was provided.

According to information gathered by the Commission, there is evidence suggesting that Chinese producers benefit from subsidies at the expense of EU industries.

The Commission also noted that these subsidies have led to a swift influx of inexpensive imports into the EU, and the expected overcapacity in China is likely to result in further increases in the near future.

By Michael Elkins | [email protected]

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