China’s Trade Minister in Paris: Talking About Electric Cars
He will meet with Luca De Meo, president of the association that brings together European automakers. Brussels's investigation into state aid to Beijing is under review
Chinese Commerce Minister Wang Wentao is in Paris to meet Renault CEO and president of the European Automobile Manufacturers’ Association (ACEA) Luca De Meo. At stake is the rapid growth of low-cost Chinese electric cars that are also “invading” the European market.
This was reported by Reuters, which explains that the discussions will center on an investigation by the European Commission aimed at verifying whether China’s electric car industry has actually benefited from unfair subsidies. China has seen an increase in the number of electric vehicle manufacturers, which has led to a rapid drop in domestic prices and now an increase in exports. The dynamics of “hyperproduction” and the subsequent search for sales in foreign markets (also in the context of stagnating domestic demand) also applies to other sectors of the Chinese economy.
According to the European Commission, Chinese electric cars could account for 15% of the market in 2025; there are complaints that the sector has received huge government subsidies, hence Brussels’s ongoing assessment of possible import restrictions and tariffs. A dynamic that China has called “protectionist.”