Chinese electric vehicle (EV) builders hit a roadblock after the European Commission (EC) launched an anti-subsidy investigation last week, which is likely to affect annual exports of more than 2 million battery-powered vehicles projected to be sold in the continent by 2030, reports the South China Morning Post. A potential decision to impose tariffs higher than the standard 10% rate for Chinese-made electric cars in the European Union (EU) may also trigger a retaliatory measure by Beijing to curb imports of European-made vehicles, analysts say.
“The investigation is a serious matter for the Chinese EV makers because a higher tariff could put a stumbling block to export growth of their cars to Europe,” said David Zhang, a visiting professor at Huanghe Science and Technology College. “It may trigger a chain reaction because Beijing can slap punitive tariffs on European-made cars, too.”
On Wednesday, the EC began an investigation into Chinese-made EVs that are suspected of benefiting from state subsidies at the expense of European competitors.