The European Commission has initiated an anti-subsidy investigation into electric vehicles (EVs) imported from the Chinese mainland, aiming to determine whether punitive tariffs should be imposed on these cheaper alternatives. In her annual address to the European Parliament, Ursula von der Leyen, President of the European Commission, highlighted that \\"global markets are now flooded with cheaper electric cars,\\" attributing their affordability to significant state subsidies.
While the move is officially intended to protect European automakers, some observers in Brussels view von der Leyen's decision as a strategic move to bolster her candidacy for a second term. This protectionist stance is unusual, as it appears to be driven by the European Commission rather than by industry complaints, suggesting a broader trend of protectionism within the Western world.
The Chinese Ministry of Commerce has strongly condemned the EU's actions. A statement from the ministry declared that the investigation is a guise to protect European industries under the pretense of \\"fair competition.\\" The ministry further warned that this decision could disrupt the global automotive industry and negatively impact China-EU economic and trade relations.
Underlying the EU's decision is a strategic effort to grant competitive advantages to its car manufacturers in response to China's dominance in the EV sector. European automakers are increasingly concerned about China's ability to produce low-cost, consumer-friendly electric vehicles, viewing it as a significant competitive threat.
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What drives EU's alleged anti-subsidy probe into Chinese EVs
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