German Manager Magazine: Ursula von der Leyen takes aim at Chinese electric car subsidies002730

The EU is launching an investigation into government support for electric cars China a. “The price of these cars is artificially depressed by huge state subsidies – this distorts our market,” said EU Commission President Ursula von der Leyen on Wednesday in the European Parliament in Strasbourg. That is not acceptable. World markets would be flooded with cheaper Chinese electric cars.

An anti-subsidy investigation can lead, for example, to punitive tariffs being imposed. Measures are currently underway in several economic sectors to reduce the EU’s dependence on countries such as China and to protect domestic companies. In March, the EU Commission presented a proposal for a law on the supply of raw materials. This is intended to ensure that the EU does not remain dependent on imports from individual countries such as China for important raw materials.

Europe is open to competition, but not to an unequal race to the bottom, said von der Leyen. “We must defend ourselves against unfair practices.”

At the same time, she emphasized that it was essential to maintain dialogue with China. There are issues on which we need to work together. At a planned EU-China summit this year, she will take the position that risks should be minimized but not decoupled.

At the IAA Mobility in Munich, Chinese car manufacturers performed like never before. With their new models BYD, Nio and Co sometimes even significantly overshadow the German car manufacturers.

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