According to Ukrinform, it was reported on the official website of the European Union that the investigation had started.

The investigation, which will last about a year, is expected to determine whether China’s electric vehicle value chains have benefited from illegal subsidies and whether this subsidy has caused or threatened to cause economic harm to European electric car makers.

If both are approved, the European Commission could impose high tariffs on electric cars imported from China to protect European manufacturers from unscrupulous competitors.

The European side emphasized that the investigation, announced by European Commission President Ursula von der Leyen on September 13, will be carried out within the framework of strict legal procedures in accordance with EU and WTO rules and that all parties involved in this procedure will receive permission. The Chinese government and Chinese automakers are about to present their comments, evidence and arguments.

In the message, the EC President is quoted as saying that the electric vehicle sector has great potential for Europe’s future competitiveness and leadership in the green industry, so EU car manufacturers and related sectors are already investing and innovating to fully develop this potential.

“If we find evidence that their (European producers’) efforts are hampered by market distortions and unfair competition, we will act decisively. And we will do so with full respect for our international obligations, because Europe plays by the rules within its borders and around the world.”

China, on the other hand, expressed its dissatisfaction with the launch of the investigation and stated that there was no reason to conduct the investigation.

In its statement on the subject, the Ministry of Commerce of the People’s Republic of China said that the European Commission’s decision was “based only on subjective assumptions regarding so-called subsidies and the threat of harm, does not contain sufficient evidence, and is contrary to WTO rules.”

The Chinese side claims that the European Commission allocated too little time for preliminary consultations on the investigation and did not present “convincing consultation materials” that harmed China’s rights and interests.

The Ministry of Commerce of the People’s Republic of China called on the European side to “wisely use trade defense measures on the basis of general support for the stability of global industrial chains and the comprehensive strategic partnership between China and the EU” and also promised: “To pay close attention to further investigation procedures in Europe and Chinese “Strictly protect the legitimate rights and interests of companies”.

According to Ukrinform, the European Commission announced that the transition period has begun in the implementation of the Carbon Limit Adjustment Mechanism (CBAM), which imposes a “carbon” tax on goods entering the EU from third countries.