China is seeking Spain’s help to ease anxiety over the ongoing anti-subsidy probe into Chinese electric vehicles, Reuters reports.
China seeks Spanish ally to counter EU probe
Chinese Commerce Minister Wang Wentao took the opportunity to ask for the Spanish government’s support in addressing concerns over the European Union’s investigation into China-made electric vehicles during a recent meeting in Madrid.
The Chinese Minister highlighted the importance of global joint efforts to counter climate change and the China-EU comprehensive strategic partnership. He reiterated that the ongoing anti-subsidy investigation into Chinese EVs amounted to protectionism.
“It’s not [a matter of] excess capacity but [rather] anxiety. We hope that the EU and China can address each other’s concerns through dialogue and communication.”
Chinese Commerce Minister Wang Wentao
In this sense, China is trying to nudge Spanish ministers for the economy and industry to encourage the EU to keep an open perspective on green and new energy industries.
Minister Wang stated that the Chinese government was willing to cooperate with Spain to boost trade, promote two-way investments, and expand the alliance. A separate announcement revealed its development of a coordination mechanism for foreign-funded companies to raise the challenges they face in China.
Probe focuses on potential subsidies given to Chinese electric automakers
The EU Commission initiated a probe into Chinese electric vehicle imports in October 2023. It will help them determine whether to set punitive tariffs on cheap EVs from China to protect homegrown automakers.
The EU is trying to prove that Chinese electric automakers benefit from distortive state subsidies, which enable them to sell their products at a very low price compared to their rivals.
Last week, the EU announced its decision to postpone the decision until after the European Parliament election on June 9.
Move seen as attempt to gain ally within the EU
The Chinese government is encouraging Spain, an EU member state, to serve as an ally within the bloc. It hopes the Spanish government can potentially influence the ongoing anti-subsidy probe to secure a favorable outcome.
China argues that the EU probe is based on “anxiety” that promotes protectionism instead of fair trade practices, potentially impeding global efforts to combat climate change.
Spanish Minister for Economy and Industry Carlos Cuerpo asserted that the country is willing to facilitate business between the two countries in various fields, including automobiles, renewable energy, industrial machine tools, and medical equipment.
