China’s electric vehicle exports to EU hit record level amid Brussels subsidy probe
- Exports to the bloc passed the US$2 billion mark for the first time in October, almost double the value of shipments the previous month
- The EU is investigating allegations Chinese EV makers are being heavily subsidised and may respond with extra duties on imports to the bloc
Exports topped US$2 billion for the first time in October, according to calculations based on detailed data released by the Chinese customs authorities on Monday.
They were up 32.25 per cent from the same month last year, and almost double the value of shipments in September this year.
Brussels officials are proceeding with an investigation into what they believe to be heavy Chinese government subsidies for EV makers, which they say are leaving manufacturers in Europe at a disadvantage.
There are also mounting concerns about overcapacity issues in China, connected to sluggish demand in the world’s second-largest economy, which could see more cheaper Chinese-made goods landing in the European market.
“There is clear overcapacity in China, and this overcapacity will be exported. Especially if overcapacity is driven by direct and indirect subsidies,” European Commission President Ursula von der Leyen said last week.