Mobility Portal, Spain
Date: September 14, 2023
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By Mobility Portal
European Union

Von der Leyen Announced Probe into Chinese EV Subsidies

The European Union is trying to prevent Chinese EVs from undermining European car sales.
The President of the European Commission, Ursula von der Leyen.
The President of the European Commission, Ursula von der Leyen.

On Wednesday, the President of the European Commission, Ursula von der Leyen, announced the launch of an investigation into the subsidies that China provides to its EVs.

These subsidies result in “artificially low” prices for Chinese electric vehicles due to the substantial government support, which in turn leads to losses for European companies.

Von der Leyen made this announcement during her State of the Union address at the European Parliament in Strasbourg, France.

She expressed concern that global markets are flooded with cheaper Chinese EVs, and their prices are artificially kept low thanks to significant state subsidies.

The head of the European Commission emphasized the essential role of the electric vehicle industry in transitioning to a “clean” economy, highlighting its significant potential for Europe.

However, she argued that the public subsidies from China are distorting the market.

Von der Leyen stated that European companies are often excluded from foreign markets or fall victim to predatory practices, with competitors benefiting from substantial state subsidies.

She emphasized that the European Union cannot accept this situation, either from within the EU or from external sources.

As a result, she announced that the European Commission will initiate an investigation into subsidies for EVs coming from China.

Von der Leyen stressed that the EU is open to competition but not to a race to the bottom, and therefore, the bloc must defend itself against unfair practices while keeping lines of communication and dialogue with China open.

Read more: Automotive Sector to von der Leyen: “Urgent” Call to Transform Industry with eMobility in Mind

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