Chinese Official States EV Companies Unreliant on Subsidies

In a roundtable discussion in Paris on Apr 8, Commerce Minister Wang Wentao emphasized that China's electric vehicle (EV) companies do not rely on subsidies to gain a competitive edge, dismissing accusations of "overcapacity" leveled by the United States and Europe. Wang's remarks, conveyed through a statement from the commerce ministry on Monday, came during discussions with representatives from more than 10 Chinese enterprises, including Geely, BYD, and CATL, as they deliberated China's EV exports into the European market.

Wang underscored that China's EV sector thrives on continuous technological innovation, a robust production and supply chain infrastructure, and fierce market competition for rapid advancement. He asserted that reliance on subsidies is not a primary driver of competitiveness for Chinese EV firms, refuting claims of "overcapacity" made by the United States and Europe as baseless.

Broader discussions during the meeting revolved around the European Commission's ongoing investigation into whether China's EV industry has benefited from unfair subsidies. The Commission's inquiry aims to assess whether tariffs should be imposed on exports to safeguard European car manufacturers, with a conclusion expected by November, although provisional duties could be enforced earlier.

Meanwhile, US Treasury Secretary Janet Yellen, currently in China, has highlighted global apprehensions regarding China's excessive industrial capacity. Yellen emphasized that such overcapacity is detrimental not only to China but also to producers in other countries, underlining growing international concerns on the matter.