China has criticized the EU’s probe into its electric vehicles as trade protectionism and urged Spain to advocate for dialogue. The EU’s investigation, based on alleged “excessive production capacity,” is seen as a barrier to cooperation in vehicles and renewable energy between the two nations.
Minister Wang Wentao emphasized the importance of addressing concerns through communication. Spain aims to boost trade and investment with China across various sectors. The countries also discussed facilitating people flow, government procurements, and market access for agricultural products.
Electric cars, lithium batteries, and solar panels are key growth drivers for China, with exports increasing by nearly 30% in 2023. However, global assessments of China’s overcapacity and subsidies in the new-energy sector are causing challenges for manufacturers.
As tensions rise, economists emphasize the need for genuine dialogue and actions from China to address concerns and mitigate obstacles faced by Chinese EV makers globally.