China Denies EV Manufacturers Rely On Subsidies To Gain Global Advantage

During a roundtable discussion amongst Chinese automotive firms recently in Paris, China’s Commerce Minister, Wang Wentao denied that Chinese EV-makers rely on subsidies to obtain a competitive edge.

Wang went on to add that these statements, which were made by the United States and Europe that these Chinese firms are running at an overcapacity, were also baseless.

Said meeting in Paris also touched on the subject of China's EV exports to the European market, among other topics attended by representatives from ten Chinese automotive companies. Amongst them were Geely, BYD, and CATL.

Wang went on to say that instead of subsidies, China's EV industry relies on continual technological innovations, improved manufacturing and supply chain management, and complete market competition to drive rapid development.

Other core subjects tackled at the meeting include the European Commission's (EC) probe into whether China's electric vehicle industry has profited from unfair subsidies. The Commission is studying whether or not to apply export duties in order to defend European automakers who are struggling to remain competitive in the EV space simply due to the sheer number of offerings and technological advancement that is coming out from China.

Although the European Commission had imposed interim levies earlier, it is scheduled to end by November.

Meanwhile in China, U.S. Treasury Secretary Janet Yellen had also expressed worries that China's industrial capacity surplus is being flooded around the world and that in itself is bad for China and could potentially hurt manufacturers in other nations.