“We like competition but it has to be fair competition,” European Commission President Ursula von der Leyen said in an interview with Bloomberg. “What we see is massive subsidies in the EV sector in China, which is of course unleveling our playing field.”
Beijing has called the move, which may trigger import tariffs on Chinese vehicles, “a naked act of protectionism.” If tariffs are imposed, China’s most powerful response would be to restrict access to its vast market — something that would hit German automakers hardest as they sold 4.6 million cars there last year.
German Foreign Minister Annalena Baerbock told Bloomberg Television on Sunday that the EU must reduce its reliance on China and that she supports the EVs investigation.“If you are bound too closely it can endanger yourself.” She added that “cutting down on our dependency” was necessary with a country like Russia that invaded Ukraine, “but also now with regard to China.”
The EV probe against China is part of a broader EU effort to “de-risk” the relationship without “de-coupling.” This has included restricting sales of high-end semiconductors and implementing export controls related to quantum computing and artificial intelligence. The bloc has also put in place new instruments to address China’s coercive practices.