Last October, the European Commission opened an inquiry into whether Chinese automakers are the beneficiaries of such significant subsidies by the Chinese government that they have an unfair economic advantage over domestic manufacturers. The question is ridiculous, of course. Everyone on Earth knows the Chinese government has been providing massive support to its automotive sector for 20 years.
China has been open about its commitment to electric car manufacturing. It has told everyone its plans and then made those plans a reality. So, it should come as no surprise that Chinese companies can build electric cars in China, ship them overseas, and still undercut the price of electric cars from domestic manufacturers by 25% or more.
What the EU Commission is doing is trying to find a way to lock the barn door after the horses have bolted and do it in a way that is not blatantly illegal under international law.
Source: CleanTechnica: Read The Article
PSR Analysis: Trade disputes have been part of international affairs for as long as there have been nations. The EU is trying to balance the joy of cheaper products against the need to protect jobs within the EU. The electric car price wars in China suggest there is massive oversupply in that country, so it is natural for its manufacturers to seek new markets. PSR
Guy Youngs is Forecast & Adoption Lead at Power Systems Research
