The Japan Times - EU confronts Chinese subsidies with electric car probe

EUR -
AED 4.120835
AFN 72.376646
ALL 91.446363
AMD 404.430758
ANG 2.00828
AOA 1030.068071
ARS 1734.359288
AUD 1.62136
AWG 2.022547
AZN 1.912974
BAM 1.961233
BBD 2.259861
BDT 139.356061
BGN 1.961204
BHD 0.423252
BIF 3378.578422
BMD 1.122079
BND 1.436078
BOB 13.334763
BRL 6.181191
BSD 1.122008
BTN 105.309742
BWP 15.416709
BYN 3.359607
BYR 21992.738982
BZD 2.256652
CAD 1.584964
CDF 2570.681235
CHF 0.920132
CLF 0.027649
CLP 1088.168925
CNY 7.487409
CNH 7.483652
COP 3676.0751
CRC 508.2079
CUC 1.122079
CUP 26.928601
CVE 110.665006
CZK 24.345714
DJF 199.415625
DKK 7.476381
DOP 68.053886
DZD 152.620074
EGP 60.46562
ERN 16.831178
ETB 180.876813
FJD 2.526699
FKP 0.840202
GBP 0.834944
GEL 2.911781
GGP 0.840202
GHS 13.111489
GIP 0.840202
GMD 83.033728
GNF 9944.378364
GTQ 8.573714
GYD 235.220589
HKD 8.799957
HNL 30.380262
HRK 7.595361
HTG 147.067424
HUF 362.431919
IDR 20293.912103
ILS 3.54441
IMP 0.840202
INR 105.415967
IQD 1698.826878
IRR 2134513.700104
ISK 137.228052
JEP 0.840202
JMD 178.243793
JOD 0.795585
JPY 177.315894
KES 145.756644
KGS 98.126077
KHR 4583.690588
KMF 495.958991
KPW 1009.870624
KRW 1509.96422
KWD 0.348775
KYD 0.935082
KZT 503.404593
LAK 25252.377599
LBP 100482.130971
LKR 373.071867
LRD 191.090351
LSL 18.581951
LTL 3.313206
LVL 0.678734
LYD 7.214799
MAD 10.948678
MDL 20.224849
MGA 5155.950214
MKD 61.536967
MMK 2355.754922
MNT 4040.791023
MOP 9.062205
MRU 45.163564
MUR 52.858792
MVR 17.275707
MWK 1949.05068
MXN 20.803113
MYR 4.553845
MZN 71.696486
NAD 18.581481
NGN 1511.450807
NIO 41.079237
NOK 10.551522
NPR 168.495788
NZD 1.991925
OMR 0.431396
PAB 1.122109
PEN 3.862754
PGK 5.040344
PHP 70.762196
PKR 310.423176
PLN 4.386822
PYG 7013.429462
QAR 4.087729
RON 5.343004
RSD 117.67346
RUB 92.574778
RWF 1655.065816
SAR 4.219482
SBD 9.031142
SCR 15.780944
SDG 674.960217
SEK 11.000016
SGD 1.435267
SHP 0.840351
SLE 25.751724
SLL 23529.430449
SOS 641.25269
SRD 42.136277
STD 23224.759885
STN 24.994299
SVC 9.8182
SYP 14589.264556
SZL 18.581752
THB 37.488452
TJS 10.300189
TMT 3.927275
TND 3.349961
TOP 2.701695
TRY 56.354259
TTD 7.610082
TWD 36.808219
TZS 2967.895463
UAH 51.116008
UGX 4594.728881
USD 1.122079
UYU 45.245142
UZS 13464.942184
VES 1005.737375
VND 28630.394464
VUV 133.821406
WST 3.128157
XAF 655.957
XAG 0.021033
XAU 0.000271308372
XCD 3.032473
XCG 2.022202
XDR 0.793368
XOF 655.957
XPF 119.331742
YER 265.51185
ZAR 18.382448
ZMK 10100.052768
ZMW 22.805178
ZWL 361.308825
SSP 6446.60178
MXV 2.338638
  • RYCEF

    0.1000

    19.81

    +0.5%

  • VOD

    -0.2500

    16.33

    -1.53%

  • CMSC

    -0.2800

    20.12

    -1.39%

  • RBGPF

    -2.0000

    65

    -3.08%

  • RIO

    -0.2500

    94.16

    -0.27%

  • BTI

    -1.2000

    54.85

    -2.19%

  • NGG

    -0.3000

    74.94

    -0.4%

  • GSK

    -0.3500

    49.35

    -0.71%

  • BCE

    -0.4200

    20.14

    -2.09%

  • CMSD

    -0.3400

    19.93

    -1.71%

  • BP

    -0.9100

    43.52

    -2.09%

  • RELX

    0.1700

    33.24

    +0.51%

  • BCC

    -0.6200

    75.97

    -0.82%

  • AZN

    -1.9400

    164.21

    -1.18%

  • JRI

    0.0000

    10.77

    0%

EU confronts Chinese subsidies with electric car probe

EU confronts Chinese subsidies with electric car probe

Brussels will investigate Chinese state subsidies for electric cars, the EU chief said Wednesday, vowing to defend Europe's industry from unfair competition.

Text size:

The move is a victory for France which has expressed concerns that Europe will fall behind during the green transition if it is not more assertive when confronted with China's alleged protectionism.

But some EU member states, including Germany, are wary of angering Beijing, since they rely on trade relations with China, although Berlin welcomed the probe Wednesday.

European Commission president Ursula von der Leyen announced the anti-subsidy investigation, vowing to defend Europe's manufacturers.

"Global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies," von der Leyen said, during a speech at the European Parliament in Strasbourg.

The probe could lead the European Union to impose duties on those cars that it believes are unfairly sold at a lower price, thereby undercutting European competitors.

"Europe is open for competition but not for a race to the bottom," the European Commission president said.

A Chinese official accused the EU of "protectionism" in a social media post.

Pointing to information from the European Automobile Manufacturers Association (ACEA), Wang Lutong, director-general of the Chinese foreign ministry's department of European affairs, said "many EU members subsidise their electric vehicle industries".

"In what position is the commission to launch anti-subsidy investigation into electric vehicles from China? This is nothing but sheer protectionism," he said.

French Finance Minister Bruno Le Maire said the probe was a "very good decision" during a visit to Berlin. Germany's Economy Minister Robert Habeck said it showed the "right attitude" and was about tackling "unfair competition".

Paris has already announced measures that would provide subsidies for new electric cars based on the manufacturers' emissions output. This would be more difficult for Chinese cars since their production often relies on coal-powered electricity.

- 'Distorted competition' -

European car makers also hailed the EU's investigation as a "positive signal".

"The European Commission is recognising the increasingly asymmetric situation our industry is faced with, and is giving urgent consideration to distorted competition in our sector," said Sigrid de Vries, director general of the ACEA.

There are growing concerns across Europe about how much the continent relies on Chinese products, especially those needed for the EU's focus on clean energy.

The EU's internal market chief Thierry Breton last week warned about a trend emerging where Europe was "being relegated to net imports of electric vehicles or solar panels".

China could overtake Japan to become the world's largest car manufacturer this year, according to some experts.

But European manufacturers have also to contend with state subsidies for electric vehicles across the Atlantic.

The US Inflation Reduction Act directs some $370 billion in subsidies towards America's energy transition, including tax breaks for US-made electric vehicles and batteries.

As she made the announcement, von der Leyen harked back to the bitter dispute with China over solar panel imports a decade ago.

"We have not forgotten how China's unfair trade practices affected our solar industry. Many young businesses were pushed out by heavily subsidised Chinese competitors," she said.

The EU imposed anti-dumping duties in 2013 after European panel manufacturers complained they were being forced out of business by underpriced Chinese imports.

The restrictions were scrapped five years later.

- 'Vital' dialogue -

Von der Leyen has called on the EU to define its own approach to Beijing, although some of Europe's larger powers want to be cautious to avoid severing business ties.

Despite her strong comments, von der Leyen said it was "vital" for Europe to maintain "communication and dialogue with China".

"Because there are also topics, where we can and have to cooperate. De-risk, not decouple –- this will be my approach with the Chinese leadership at the EU-China Summit later this year," she added.

The EU's trade commissioner Valdis Dombrovskis will head to China next week, he said in a social media post, "to engage on trade and economic opportunities/challenges".

burs-raz/dc/lth

T.Ueda--JT