China Criticizes EU's Unprecedented Probe into Auto Supply Chains

China's commerce ministry criticizes the European Commission for requesting unprecedented detailed information regarding Chinese automakers' supply chains in an anti-subsidy probe. The EU plans to impose extra duties on imported Chinese EVs to combat subsidies. China claims the probe undermines fair competition and plans to safeguard its firms' rights.


Reuters | Updated: 20-06-2024 14:44 IST | Created: 20-06-2024 14:44 IST
China Criticizes EU's Unprecedented Probe into Auto Supply Chains
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The amount of detailed information regarding Chinese automakers' supply chains the European Commission requested during an eight month-long anti-subsidy probe was unprecedented and undermined fair competition, China's commerce ministry said on Thursday.

The European Commission, which oversees trade policy for the 27-nation strong European Union, announced on June 12 that it would impose extra duties of up to 38.1% on imported Chinese EVs from July to combat excessive Chinese subsidies. Chinese automakers were "shocked and disappointed" with the decision after they did their best to cooperate, a spokesperson for the Chinese commerce ministry said.

"The type, scope and quantity of information collected by the European side was unprecedented and far more than what is required for a countervailing duties investigation," He Yadong said in response to a question from Chinese state media over whether the Commission had sought to spy on its EV industry. The Commission requested Chinese automakers hand over information concerning sourcing raw materials for batteries, manufacturing components, and pricing and developing sales channels, the spokesperson added.

Chinese state media on Wednesday ran an article suggesting that the Commission sought to spy on Chinese car companies, given the "many unreasonable demands made during this inquiry", and that the probe was an investigation in name only. The Commission's move "lacks legal basis, and damages the global green transition and open cooperation", He Yadong said on Thursday.

China will take all necessary measures to safeguard its firms' legitimate rights and interests, he added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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