‘Stakes Are High’ as China Has Tools to Strike Back at EV Curbs
- European probe into Chinese EV subsidies may lead to tariffs
- Beijing may choose to retaliate by cutting access to minerals
XPeng Inc.'s G9 EV at the company's showroom in Guangzhou, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
The European Union launched an investigation into Chinese subsidies for electric vehicles this week, highlighting the growing industrial and geopolitical competition between the two economies.
The probe may ultimately lead to import tariffs on Chinese vehicles, drawing sharp rebuke from Beijing, who called the move a blatant act of protectionism. There are also concerns that Beijing may retaliate against any trade curbs.