China slams EU over electric vehicle subsidy probe

China's Ministry of Commerce (MOC) has expressed strong dissatisfaction over a decision by the European Commission to launch an anti-subsidy probe into Chinese electric passenger vehicles.

"This countervailing duty investigation from Europe is based only on subjective assumptions about so-called subsidies and threats of damage. It lacks sufficient evidence to support it and is inconsistent with relevant WTO rules, and China is strongly dissatisfied with this," an MOC spokesperson said Wednesday.

The European side had required China to conduct consultations within a very short period of time but failed to provide "effective consultation materials," which hurt China's rights and interests, the spokesperson said.

Employees work on the assembly line of C11 electric SUV at a factory of Chinese EV startup Leapmotor in Jinhua, Zhejiang Province of China. Credit: Hu Xiaofei/VCG via Getty Images

China urges the European side to use trade remedy measures prudently by proceeding from the big picture of maintaining the stability of global industrial and supply chains and the China-EU comprehensive strategic partnership, the spokesperson said.

China also encourages deepened cooperation with Europe in the new energy industry, represented by electric vehicles, and the creation of a fair, non-discriminatory and predictable market environment for the common development of the China-EU electric vehicle industry, the spokesperson said.

"China will pay close attention to Europe's follow-up investigation procedures and firmly safeguard the legitimate rights and interests of Chinese companies," the spokesperson added.