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China bites back as EU launches probe into electric vehicle industry
- Brussels officially opens investigation, saying it has ‘sufficient evidence’ of subsidies for Chinese EVs that could harm ‘vulnerable’ EU sector
- Beijing slams inquiry as ‘naked protectionist behaviour’ and warns it will disrupt global supply chains
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Finbarr Berminghamin Brussels
The European Commission officially opened an investigation into China’s electric vehicle sector on Wednesday, saying it was “already in possession of sufficient evidence” that Beijing has provided subsidies that risk damaging EU industry.
A statement published in the Official Journal of the European Union said that based on public information, the subsidies “pose an imminent threat of injury to an already vulnerable EU industry”.
Depending on the evidence uncovered, and majority support garnered among EU member states, the union could slap import duties on vehicles coming from China.
Beijing bit back immediately.
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A Chinese Ministry of Commerce statement slammed the investigation as “naked protectionist behaviour that will seriously disrupt and distort the supply chain of the global automotive industry chain, including the EU”.
“China expresses strong dissatisfaction with this. The European side requested the Chinese side to conduct consultations within a very short period of time and failed to provide effective consultation materials, which seriously jeopardised the rights of the Chinese side,” the statement continued.
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An EU spokesman said the commission offered China consultations before the investigation was initiated.
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