BEIJING: China warned on Thursday that a probe by the European Union (EU) into Chinese state subsidies for electric cars will have a negative impact on trade ties between the bloc and Beijing.
A commerce ministry statement said that the Chinese side believes that the EU’s proposed investigative steps are to protect its own industry in the name of ‘fair competition’ and will have a negative impact on EU- China economic and trade ties.
It said the probe was naked protectionist behaviour that will gravely disrupt and distort the international automotive industry supply chain, including the EU.
Ursula von der Leyen, European Commission President, announced the anti-subsidy probe on Wednesday, vowing to protect the bloc’s automakers against unfair competition.
China urges for dialogue
The commerce ministry statement said that the Chinese side urges the EU to carry out discussion and consultation with the Chinese side, create a non-discriminatory, fair, and predictable market environment for the joint development of the EU-China electric vehicle industry.
