The European Union has launched an investigation into China’s electric car sector receiving generous government support that allows it to lower prices and flood global markets.
But the European move has angered the Chinese authorities, amid fears that it would cause a tariff war between the two sides in the coming period, reports Al-Anba daily.
Given this scenario, the European Commission has reportedly launched an investigation to assess whether punitive tariffs will be imposed to protect EU producers from imports of cheap Chinese electric cars.
Meanwhile, the European Commission President Ursula von der Leyen has reportedly told the European Parliament that global markets are currently being flooded with cheap electric cars, with prices kept artificially low through massive government subsidies.
The anti-subsidy investigation covers battery-powered cars from China, as well as non-Chinese brands that are manufactured in the Asian country, such as Tesla, Renault, and BMW.