“Huge state subsidies” for China’s electric cars are distorting the market, criticizes EU Commission chief von der Leyen. Therefore there should be an investigation. She also announced more support for the domestic wind industry.
The EU wants to launch a competition investigation into market distortions caused by Chinese subsidies for electric cars. “The price of these cars is artificially depressed by huge government subsidies – this distorts our market,” said EU Commission President Ursula von der Leyen during her State of the EU speech in the European Parliament in Strasbourg. That is not acceptable.
World markets would be flooded with cheaper Chinese electric cars. She will therefore initiate an “anti-subsidy investigation”. This can lead, for example, to punitive tariffs being levied.
E-car industry “enormous potential for Europe”
The car industry and the switch to electric drives are a “crucial industry for a clean economy – with enormous potential for Europe,” the Commission President continued. Europe is open to competition, but not to an unequal race to the bottom.
The EU has not forgotten “how China’s unfair trade practices have affected our solar industry.” A few years ago, many companies were forced out of the market by heavily subsidized Chinese competitors. This should not be repeated with electromobility.
EU wants to reduce dependency
Measures are currently underway in several economic sectors to reduce the EU’s dependence on countries such as China and to protect domestic companies. In March, the EU Commission presented a proposal for a law on the supply of raw materials. This is intended to ensure that the EU does not remain dependent on imports from individual countries such as China for important raw materials.
At the same time, von der Leyen emphasized that it was essential to maintain dialogue with China. There are issues on which we need to work together. At a planned EU-China summit this year, she will take the position that risks should be minimized but not decoupled.
MPs welcome announcement
German MEPs have so far reacted positively to the announcement. CSU Vice President Angelika Niebler said on the X platform, formerly Twitter, that she “completely agreed” with von der Leyen’s words about Europe’s competitiveness. “The EU should not engage in a race to the bottom.”
The chairwoman of the Internal Market Committee in the EU Parliament, Anna Cavazzini, called the Commission President’s announcement “remarkable”. “China’s unfair competition is becoming more and more aggressive and many green industries in the EU are suffering from it,” said the Green politician.
The SPD trade politician Bernd Lange emphasized that an investigation should be based on facts and not be intertwined with politics. There should be no race to the bottom, but at the same time one should not act in a protectionist manner.
From the wind industry to Ukraine refugees
In addition to the competition investigation, von der Leyen also spoke in her annual speech about the fight against illegal migration and called for a quick conclusion of trade agreements with Mexico, the Mercosur states and Australia. She also announced a package of measures to support the domestic wind industry.
In view of this summer’s devastating natural disasters, von der Leyen also spoke about the Green Deal, with which the EU wants to become climate neutral by 2050. “We have seen the chaos and misery caused by extreme weather events – from Slovenia to Bulgaria and across our Union,” she said. “The European Green Deal was born out of this need to protect our planet.” The EU Commission wants to start a series of energy transition dialogues with industry this month.
In addition, according to their wishes, war refugees from Ukraine should be able to stay in the EU without any problems at least until March 2025. The Commission will propose to extend the temporary protection regime for Ukrainians in the EU.
However, Von der Leyen did not comment on whether she would seek another term in office after the European elections next June.
With information from Stephan Ueberbach, ARD studio Brussels