10.5 C
Washington
Tuesday, April 16, 2024

European Union Launches Probe into Chinese Electric Car Subsidies

On Wednesday, the EU’s top official stated that the EU will launch a probe into Chinese subsidies of electric cars, highlighting Europe’s rising economic and geopolitical struggle with China.

Chinese manufacturers have established themselves as the global market leaders in electric cars, and they view Europe as a promising new market. European automakers are worried that they can’t compete with China’s affordable models, so they’re rushing to increase their offerings of battery-powered vehicles.

In her annual presentation on the status of the European Union, which sets the tone for the next year, European Commission President Ursula von der Leyen unveiled the idea.

China’s continued support for Russia despite the invasion of Ukraine has strained political and diplomatic relations between Europe and China, despite the continents’ historic and close economic links.

The European Union’s lack of a unified approach towards China has been highlighted by the rush of diplomatic visits this year. Instead of cutting off all links, Ms. von der Leyen has advocated “de-risking” the Europe-China relationship through decreasing economic reliance on Beijing.

The investigation would be part of the European Union’s larger effort to combat what it sees as China’s anti-competitive behaviour, which it claims is stifling European enterprises across a variety of economic sectors, including innovation and manufacturing, to the detriment of Europe.

Ms. von der Leyen said that preventing China from dominating global supply chains for essential components is of utmost strategic significance.

David Faber
David Faber
I am a Business Journalist of The National Era
Latest news
Related news

LEAVE A REPLY

Please enter your comment!
Please enter your name here