BEIJING/PARIS – China’s Commerce Minister began a trip to Europe by telling his nation’s top carmakers that US and European assertions of Chinese excess EV (electric vehicle) capacity were baseless and that innovation and “perfect” supply chains were behind their performance.
Mr Wang Wentao held a roundtable meeting in Paris on April 7 with representatives of 10 Chinese EV firms including BYD, CATL and Geely, ahead of talks on a European probe into whether Chinese EVs have benefited from unfair subsidies.
Mr Wang reiterated Beijing’s stance that Chinese EV makers did not depend on subsidies to gain a competitive advantage, according to a statement published by the Commerce Ministry on April 8.
“China’s electric vehicle companies rely on continuous technological innovation, perfect production and supply chain system and full market competition for rapid development, not relying on subsidies to gain competitive advantage,” Mr Wang said.
He also told them the Chinese government would actively support firms to safeguard their legitimate rights and interests.
Four people briefed on Mr Wang’s trip told Reuters in late March that the discussions would focus on the European Commission investigation, which began late in 2023 and aims to determine whether to impose tariffs on Chinese exports to protect European carmakers. China has a significant lead over European companies in developing low-cost EV models in particular.
The investigation is due to conclude by November, although the European Union executive could impose provisional duties earlier.
Mr Wang also met on April 7 Renault chief executive Luca de Meo, who is also acting chairman of the European Automobile Manufacturers’ Association (Acea), said a person briefed on the meeting.
The Renault CEO stressed the importance of “reciprocity” and told Mr Wang the Chinese should bring more of its supply chain to continental Europe, a person with knowledge of the meeting said. He invited Mr Wang to consider joint research and development projects for future technologies such as next-generation batteries, the person added.
The Acea and Chinese commerce ministry have not commented publicly on the meeting.
Chinese officials say the criticism understates innovation by Chinese companies in key industries and overstates the importance of state support in driving their growth. They also argue that tariffs or other trade restrictions will deprive consumers elsewhere of green energy alternatives that are key to meeting global climate goals.
French Finance Minister Bruno Le Maire has said he will hold talks with Mr Wang during his visit.
US Treasury Secretary Janet Yellen warned China that Washington would not accept new industries being decimated by Chinese imports, as she concluded four days of talks to press her case for Beijing to rein in excess industrial capacity. REUTERS
