In a recent development, China has expressed vehement dissatisfaction with the European Union’s (EU) countervailing duty investigation on Chinese electric vehicles (EVs). The Chinese government has raised concerns, asserting that the investigation is primarily rooted in subjective assumptions surrounding alleged subsidized practices and the potential threat of damage. Moreover, China claims that this probe lacks substantial evidence to substantiate the EU’s claims and is inconsistent with the pertinent rules set forth by the World Trade Organization (WTO).
A spokesperson from China’s Commerce Ministry, in response to press inquiries, stated that the EU’s demand for China to engage in consultations within an exceedingly short timeframe was detrimental to China’s rights, particularly as the EU failed to provide consultation materials. According to China, this action severely impeded its ability to respond effectively to the allegations.
From China’s perspective, the investigative measures being contemplated by the EU appear to be a guise for safeguarding its domestic industries under the banner of “fair trade.” However, China contends that this is, in fact, an embodiment of pure protectionism that could potentially disrupt and distort the global automotive industry and its intricate supply chains, including those within the EU. Furthermore, China fears that such a stance could have an adverse impact on the overall economic and trade relations between China and the EU.
China, in light of these concerns, has called upon the EU to exercise caution when deploying trade remedy measures and to consider the overarching stability of global industrial and supply chains. In addition, China has urged the EU to preserve the integrity of the comprehensive strategic partnership that exists between the two entities.
Furthermore, China has underscored the importance of fostering cooperation within the burgeoning new energy industry, particularly within the electric vehicle sector. The Chinese spokesperson has emphasized the need for creating a conducive environment that is fair, non-discriminatory, and predictable to facilitate mutual growth in the China-EU electric vehicle industry.
As the situation unfolds, China has pledged to closely monitor the EU’s follow-up investigation procedures and has reaffirmed its commitment to steadfastly defending the legitimate rights and interests of Chinese companies involved in the electric vehicle sector.
In this expansive analysis, we delve into the intricate details of China’s discontent with the EU’s countervailing duty investigation on Chinese electric vehicles. We examine the various dimensions of this issue, including China’s accusations of subjectivity, lack of evidence, and concerns over the potential disruption to the global automotive industry and trade relations between China and the EU. We also explore China’s call for prudence in the use of trade remedies and the promotion of cooperation in the electric vehicle industry, highlighting the importance of a fair and predictable environment for mutual growth. Finally, we delve into China’s commitment to safeguarding the interests of its companies as the situation continues to evolve.