China’s Minister of Commerce Wang Wentao emphasized that the rapid growth of the country’s electric vehicle industry was not a result of subsidies, but rather due to continuous innovation. He dismissed allegations of “overcapacity” by the U.S. and Europe as unfounded, attributing China’s edge in EV production to a well-established supply chain system and market competition. During a roundtable discussion in Paris, Wang highlighted the important contribution of the Chinese EV industry to global efforts aimed at addressing climate change and promoting green and low-carbon transformation. He reassured of the Chinese government’s commitment to protecting the legitimate rights and interests of Chinese firms amidst the EU’s anti-subsidy probe into electric vehicle imports from China.
The European Commission launched an investigation in October to determine whether tariffs should be imposed on imports of battery electric vehicles from China in order to offset state subsidies and ensure a level playing field. European Commission President Ursula von der Leyen expressed concerns about the global market being flooded with cheaper electric vehicles due to state subsidies, keeping prices artificially low. Meanwhile, U.S. Treasury Secretary Janet Yellen raised concerns about Chinese industrial overcapacity impacting the U.S. economy, emphasizing the need for a level playing field for American workers and firms. Yellen’s visit to China aimed to discuss managing the bilateral economic relationship and advancing American interests, with plans for intensive exchanges to address macroeconomic imbalances and overcapacity.
Wang Wentao made his remarks during a discussion with representatives from more than 10 Chinese companies, including leading EV makers Geely and BYD, as well as EV battery manufacturer CATL. The roundtable focused on the EU’s anti-subsidy probe into electric vehicle imports from China, as well as other relevant topics. Wang highlighted the role of constant innovation, well-established supply chains, and market competition in driving the growth of the Chinese EV industry, dismissing claims of overcapacity and emphasizing the industry’s contribution to global climate change efforts. The EU’s investigation into state subsidies in the Chinese EV market reflects concerns about maintaining fair competition and addressing distortions caused by government support.
U.S. Treasury Secretary Janet Yellen’s visit to China aimed to address concerns about Chinese industrial overcapacity and its impact on the U.S. economy. Yellen advocated for a level playing field for American workers and firms, pointing to the need for policies that address overcapacity to benefit the American, Chinese, and global economies. The planned intensive exchanges between Washington and Beijing are expected to facilitate discussions around macroeconomic imbalances, including their connection to overcapacity, underscoring the importance of fair competition and addressing distortions in the global market. The focus on promoting a level playing field for workers and businesses reflects ongoing efforts to ensure economic stability and sustainable growth.
In the context of growing concerns about overcapacity and state subsidies in the global electric vehicle market, China’s Minister of Commerce emphasized the importance of continuous innovation, well-established supply chains, and market competition in driving the country’s EV industry. The EU’s anti-subsidy probe into Chinese electric vehicle imports, as well as U.S. Treasury Secretary Yellen’s concerns about industrial overcapacity, highlight the need for fair competition and level playing fields in the global economy. Discussions between major economies like China and the U.S. will continue to address macroeconomic imbalances and policies that drive overcapacity, with a focus on advancing the interests of American workers and firms while promoting sustainable economic growth. The ongoing dialogue reflects the evolving dynamics of the global electric vehicle industry and efforts to ensure a more balanced and competitive market environment.
