Post by account_disabled on Feb 25, 2024 3:19:04 GMT -5
Brussels will launch an anti-subsidy investigation into Chinese electric vehicles that are “distorting” the EU market, an investigation that could constitute one of the largest trade cases launched given the scale of the market. European Commission President Ursula von der Leyen announced the investigation in her annual address to EU lawmakers on Wednesday. “Global markets are now flooded with cheaper Chinese electric cars,” she said. “And since we do not accept this from within, we do not accept it from the outside. That is why I can announce today that the commission is launching an anti-subsidy investigation into electric vehicles from China.” European companies “too often. excluded from foreign markets,” he stated in the European Parliament in Strasbourg. "They are often undermined by competitors who benefit from huge state subsidies." The investigation has been planned for months, and von der Leyen conveyed EU concerns about China's electric vehicle trade practices to Chinese Prime Minister Li Qiang in a bilateral meeting on the sidelines of the G20 summit in New Delhi on last weekend, according to one person.
Informed about the discussion. Shares in Chinese electric vehicle makers sold off on the prospect of greater regulatory scrutiny from Brussels, with Warren Buffett-backed BYD falling about 2 percent and rival Xpeng falling Job Function Email Database almost 3 percent. Other electric car makers, including Great Wall Motor and Li Auto, also fell following the announcement. Member states have demanded action against Chinese carmakers in Europe, worried that major domestic automakers risk losing their leadership as the green transition reshapes the market. The investigation could constitute one of the largest trade cases launched as the EU tries to avoid a repeat of what happened to its solar industry in the early 2010s, when photovoltaic manufacturers undercut by cheap Chinese imports went into insolvency. If found to be violating trade rules, manufacturers could be hit with punitive tariffs. In the case of the solar industry, Brussels launched a tariff regime against imports of Chinese photovoltaic cells in 2012, but subsequently eliminated controls to promote renewable energy installations.
This is an important measure by the Commission, signaling a willingness to use trade instruments more proactively to protect European industry and prevent the experience of past solar panel failures from being replicated in the crucial automotive industry." said Simone Tagliapietra, lead researcher. at the Brussels-based think tank Bruegel. Recommended Chinese automakers have made no secret of their ambitions to dominate Europe's electric car industry, which is the largest EV market outside China. BYD's European boss Michael Shu previously told the Financial Times that the brand aims to be among the top three brands by the end of the decade, and to be number one "if possible." Many of Europe's biggest carmakers have raised the alarm about Chinese imports, saying lower energy and labor costs give them an advantage over European models. Peugeot owner Stellantis, Europe's second-biggest carmaker, said it was considering making cheaper electric vehicles outside Europe and importing them to compete with Chinese models. The share of Chinese car brands in the EU market has increased from less than 1 percent in 2021 to 2.8 percent this year, according to Schmidt Automotive Research.
Informed about the discussion. Shares in Chinese electric vehicle makers sold off on the prospect of greater regulatory scrutiny from Brussels, with Warren Buffett-backed BYD falling about 2 percent and rival Xpeng falling Job Function Email Database almost 3 percent. Other electric car makers, including Great Wall Motor and Li Auto, also fell following the announcement. Member states have demanded action against Chinese carmakers in Europe, worried that major domestic automakers risk losing their leadership as the green transition reshapes the market. The investigation could constitute one of the largest trade cases launched as the EU tries to avoid a repeat of what happened to its solar industry in the early 2010s, when photovoltaic manufacturers undercut by cheap Chinese imports went into insolvency. If found to be violating trade rules, manufacturers could be hit with punitive tariffs. In the case of the solar industry, Brussels launched a tariff regime against imports of Chinese photovoltaic cells in 2012, but subsequently eliminated controls to promote renewable energy installations.
This is an important measure by the Commission, signaling a willingness to use trade instruments more proactively to protect European industry and prevent the experience of past solar panel failures from being replicated in the crucial automotive industry." said Simone Tagliapietra, lead researcher. at the Brussels-based think tank Bruegel. Recommended Chinese automakers have made no secret of their ambitions to dominate Europe's electric car industry, which is the largest EV market outside China. BYD's European boss Michael Shu previously told the Financial Times that the brand aims to be among the top three brands by the end of the decade, and to be number one "if possible." Many of Europe's biggest carmakers have raised the alarm about Chinese imports, saying lower energy and labor costs give them an advantage over European models. Peugeot owner Stellantis, Europe's second-biggest carmaker, said it was considering making cheaper electric vehicles outside Europe and importing them to compete with Chinese models. The share of Chinese car brands in the EU market has increased from less than 1 percent in 2021 to 2.8 percent this year, according to Schmidt Automotive Research.