China says ‘constant innovations,’ not subsidies, behind its EV edge

107397857 1712541561863 gettyimages 1933433802 AFP 34FQ2H2

107397857 1712541561863 gettyimages 1933433802 AFP 34FQ2H2

The newly launched BYD Seal was introduced in Jakarta on January 18, 2024, along with 2 other battery-powered vehicles that will be sold in Indonesia with an investment of 1.3 billion US dollars. China’s Minister of Commerce Wang Wentao stated that the rapid growth of the country’s electric vehicle industry was due to innovation, not subsidies. He refuted allegations of “overcapacity” by the U.S. and Europe, attributing China’s EV edge to a well-established supply chain system and market competition.

During a roundtable discussion in Paris, Wang highlighted the contributions of the Chinese EV industry to global climate change efforts. The EU is investigating whether tariffs should be imposed on battery EV imports from China to counter state subsidies and level the playing field.

European Commission President Ursula von der Leyen has expressed concerns about the global market being flooded with cheap electric vehicles due to significant state subsidies. U.S. Treasury Secretary Janet Yellen has raised concerns about Chinese industrial overcapacity and is in China for meetings to address economic issues between the two countries.

Yellen and Chinese Vice Premier He Lifeng will engage in discussions on macroeconomic imbalances related to overcapacity. Yellen is advocating for a level playing field for American workers and firms, stressing that policies to address overcapacity would benefit both American and global economies.

At the launch event of the Chinese-made BYD brand in Jakarta, the newly launched BYD Seal was displayed along with two other types of battery-powered vehicles that will be sold in Indonesia, marking an investment of 1.3 billion US dollars. China’s Minister of Commerce, Wang Wentao, attributed the rapid growth of China’s electric vehicle industry to constant innovations rather than subsidies. He dismissed allegations of overcapacity in the industry by the U.S. and Europe, citing the well-established supply chain system and market competition in China. Wang made these remarks during a roundtable discussion in Paris with representatives from Chinese companies, including EV makers like Geely and BYD. The discussion primarily focused on the EU’s anti-subsidy probe into electric vehicle imports from China. Wang emphasized the contribution of the Chinese EV industry to global climate change efforts and stated that the Chinese government would protect the legitimate rights and interests of Chinese firms. The EU’s investigation into imposing tariffs on imports of battery EVs from China aims to offset state subsidies and level the playing field, as per European Commission President Ursula von der Leyen. Meanwhile, U.S. Treasury Secretary Janet Yellen expressed concerns about Chinese industrial overcapacity and its impact on the U.S. economy during her meetings in China. Yellen advocated for a level playing field for American workers and firms, stressing the importance of addressing policies that drive overcapacity for the benefit of both the American and Chinese economies.

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