China’s commerce minister is scheduled to journey to Europe in April to engage in discussions regarding the European Commission’s inquiry into whether China’s electric vehicle (EV) sector has gained an unfair advantage through subsidies, according to four sources briefed on the matter. Wang Wentao is slated to visit France, as confirmed by a French government insider and two additional informants familiar with the trip. Requests for comments from France’s trade ministry and the European Commission remained unanswered.
The European Commission’s investigation aims to determine the necessity of imposing tariffs on exports to safeguard European automobile manufacturers. The investigation is expected to conclude by November, though provisional duties might be enforced sooner by the EU executive.
The Ministry of Commerce of China did not promptly respond to Reuters’ request for comment.
According to the European Commission, China’s portion of EVs sold in Europe could potentially achieve 15% of the market by 2025, owing to their price advantage compared to European-manufactured battery-powered vehicles.
China has refuted the assertion that its EV industry’s growth is solely due to subsidies, denouncing the EU’s investigation as “protectionist”. Analysts suggest that China’s dominant position in the battery supply chain, coupled with innovation and intense competition in a saturated domestic market, have all contributed to reduced prices.