The European Union has announced the imposition of tariffs up to 38.1% on electric vehicles from China, following an eight-month investigation. This decision aims to counteract the unfair advantages created by Chinese government subsidies. In response, China has initiated an anti-dumping probe into pork imports from the EU. Both sides have agreed to engage in negotiations to resolve the ongoing trade dispute.
The evolution of China’s electric vehicle industry can be traced back to a government initiative in 2011 that encouraged automakers to focus on technologically advanced EVs. This strategic decision aimed to reduce China’s reliance on imported oil, which poses a significant national security concern. Additionally, it aimed to position China as a competitive player in the global automotive market that was transitioning towards EVs.
To stimulate domestic demand for EVs, the Chinese government provided purchase subsidies at both central and local levels. These subsidies were gradually phased out starting in 2018 and were completely eliminated by the end of 2022. This shift aimed to promote a more sustainable and market-driven approach to the development of the EV industry in China.