EU will open investigation into Chinese subsidies for electric cars

Ursula von der Leyen, President of the European Commission, gives a speech to the European Parliament on the state of the European Union and its plans and strategies for the future. Philipp von Ditfurth/dpa

European Commission President Ursula von der Leyen announced on Wednesday an anti-subsidy investigation into electric vehicles from China.

Global markets are awash with low-cost Chinese electric cars, von der Leyen said, addressing European Union lawmakers in Strasbourg, France.

Their price is kept artificially low by “huge state subsidies”, he said, leading to market distortions in the EU.

The EU, however, does not tolerate market distortions either from inside or outside the bloc, von der Leyen said.

“Europe is open to competition, not a race to the bottom,” he said.

At the same time it is “fundamental to keep the lines of communication and dialogue open with China”, he added.