EU Escalates China Tensions With Probe to Ward Off Cheap EVs

  • Move is aimed at preventing a repeat of China’s solar dumping
  • Green shift exposes European carmakers to state-backed rivals
WATCH: “Global markets are now flooded with cheaper Chinese electric cars,” Von der Leyen says.Source: Bloomberg
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The European Union is launching an investigation into Chinese subsidies for electric vehicles in a bid to ward off a flood of cheap imports, an escalation that opens the door to retaliation which would hit the bloc’s carmakers hard.

Given the size of the market and its rapid growth, potential tariffs from the probe could have a far bigger impact than any previous anti-subsidy actions against Chinese imports.