EU’s unfair investigation into EV subsidies could damage EU-China relations

China is surrounded by several complications at the time being and one of them is the unfair EU investigation on EV subsidies. In the latest edition, the Chinese experts cited that such situations could lead to damaging ties between the EU and China.

The story began last year when the EU initiated an investigation into the EV segment to protect its manufacturers and technologies from insecure imports. This further included custom charges that helped EU producers to benefit from state allowances.

But with the onset of this month, the European Commission has turned its inspection to Chinese automakers. In the upcoming weeks, the inspectors will make their way to BYD, Geely, and SAIC to continue the EV investigation.

Notably, all these automobile corporations use Huawei’s tech and smart car solutions for their products to offer impressive driving experiences to their customers. Despite high-quality technologies, these automakers are on the investigation list.

EU-China Relations:

According to the information, China’s ambassador – Fu Cong recently said in an interview that the investigation of the European Union regarding the EV subsidies is unfair and technically can hamper Eu-China relations.

Describing this matter, Fu mentioned that China is constantly adjusting in such scenarios as it doesn’t want to increase the conflicts between the two authorities. On the other hand, the EU grants many of its auto firms which isn’t a sign of fair business.

Moreover, Fu said that if China starts following the EU steps, then many new chapters will be added to the investigation, which will lead to vast destruction between EU and Chinese consumers.

” China is cooperating with the EU’s probe because we do want to avoid a situation in which the two sides will have to resort to trade measures against each other. If China took the same approach as the EU, there are many things that could be subject to investigation.”

From the EU side, the European Commission is making efforts to reduce its dependence on China for materials and products. Though it would be worth seeing where this scenario will take a turning point.

(Source)