The newly launched BYD seal is displayed during the launch of the Chinese-made BYD brand in Jakarta, January 18, 2024, and at the same time two other types of battery-powered vehicles (EV, electric car) that will be sold in Indonesia with investments of $1.3 billion were introduced American. (Photo by Bai Ismoyo/AFP) (Photo by Bay Ismoyo/AFP via Getty Images)
Ismoyo Bay | AFP | Getty Images
Chinese Commerce Minister Wang Wentao said the rapid rise of electric vehicle companies in the country was not due to subsidies, but due to “continuous innovations.”
He said allegations of “excess capacity” by the United States and Europe were baseless, the Chinese Ministry of Commerce said on Monday. Wang also attributed China's superiority in electric vehicles to its “well-established supply chain system and market competition.”
Wang made the remarks during a roundtable discussion in Paris on Sunday with representatives of more than 10 Chinese companies including electric vehicle makers Geely and BYD as well as electric vehicle battery maker CATL, a statement from the Commerce Ministry showed.
The roundtable discussion centered around the EU's anti-subsidy investigation into electric vehicle imports from China, among other topics, according to the statement.
Wang noted that China's electric vehicle industry “has made an important contribution to the global response to climate change as well as the green and low-carbon transition.” He also said that the Chinese government will protect the “legitimate rights and interests” of Chinese companies.
The European Union launched an investigation in October to determine whether it should impose tariffs on imports of battery electric cars from China to “offset government subsidies and level the playing field”, after a significant increase in imports.
European Commission President Ursula von der Leyen said in September that “the global market is full of cheaper electric cars” and that prices were “kept artificially low” due to “huge government subsidies.”
US Treasury Secretary Janet Yellen said on Saturday that she was “particularly concerned” about the impact of excess Chinese industrial capacity on the US economy.
Yellen is currently in China for meetings on matters including managing bilateral economic relations between the United States and China and promoting American interests.
Yellen said on Saturday after her meeting with Chinese Vice Premier He Lifeng that Washington and Beijing will hold “intensive exchanges” that will “facilitate discussion on macroeconomic imbalances, including their relationship to excess capacity.”
“I intend to use this opportunity to advocate for equal opportunities for American workers and businesses,” she said, adding that “a shift away from policies that drive excess capacity would benefit the American, Chinese, and global economies.”
