China warns EU car subsidy probe will have 'negative impact'

BEIJING: China warned on Thursday a probe by the European Union into Chinese state subsidies for electric cars will have a “negative impact” on trade relations between the bloc and Beijing.

“The Chinese side believes that the EU’s proposed investigative measures are to protect its own industry in the name of ‘fair competition’… and will have a negative impact on China-EU economic and trade relations,” a commerce ministry statement said.

It said the investigation was “naked protectionist behaviour that will seriously disrupt and distort the global automotive industry supply chain, including the EU”.

European Commission President Ursula von der Leyen announced the anti-subsidy investigation on Wednesday, vowing to protect the bloc’s automakers against unfair competition.

“The Chinese side urges the EU… to carry out dialogue and consultation with the Chinese side, create a fair, non-discriminatory and predictable market environment for the joint development of the China-EU electric vehicle industry,” the commerce ministry statement said.