China's Vice Premier, He Lifeng, expressed his strong concern and dissatisfaction on Monday regarding the European Union's (EU) anti-subsidy probe into Chinese electric vehicles. During a joint briefing with the EU's chief trade negotiator, Valdis Dombrovskis, He emphasized the importance of the EU maintaining a free and open market. He stated that China hopes the EU will exercise caution and continue to promote fair competition.
In response to China's concerns, Dombrovskis warned China that the EU will be more forceful in upholding fair competition and defending its interests against China. He stressed the benefits of an open EU market, such as it benefiting European consumers, supporting green and low carbon development, and contributing to global climate change cooperation.
Furthermore, He expressed China's hope that the EU will cancel export restrictions on high-tech goods, highlighting the need for a mutually beneficial trade environment. To enhance cooperation in finance, China plans to establish a vice minister-level finance working group with the EU.
The EU launched an anti-subsidy probe into Chinese electric vehicles earlier this month, citing the need to protect domestic jobs and supply chains from what it perceives as China flooding the market with cheap vehicles. China, however, has criticized the investigation as "a naked act of protectionism," though it has not yet announced any specific retaliatory actions.
As the world's second-largest economy, tensions between China and the EU over trade issues continue to escalate. Both sides are engaged in a struggle to protect their economic interests while navigating the challenges posed by the growing prominence of electric vehicles. The outcome of the ongoing investigations and negotiations will likely have significant implications for the future of the EV market and trade relations between China and the EU.