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China's EV Innovation Defies Subsidy Claims: Minister

Wang Wentao declared: the surge of EV companies wasn't a product of subsidies but a testament to relentless innovation
April 9, 2024

China's Minister of Commerce, Wang Wentao, has rebutted claims of China's electric vehicle (EV) industry's rapid ascent being solely reliant on subsidies, asserting that it's driven by relentless innovation.

In a recent roundtable discussion in Paris involving representatives from over 10 Chinese companies, including prominent EV manufacturers Geely, BYD, and battery giant CATL, Wang emphasized China's competitive advantage in the EV realm. He attributed this success to the nation's robust supply chain infrastructure and fierce market competition, brushing aside allegations of overcapacity made by the U.S. and Europe as unfounded.

The gathering also tackled the European Union's (EU) scrutiny of Chinese EV imports, with the EU launching an investigation last October to assess whether tariffs should be imposed to counter alleged state subsidies distorting the market. This move followed concerns raised by EU Commission President Ursula von der Leyen about artificially low prices fueled by hefty state subsidies, indicating a drive for fair competition.

Meanwhile, U.S. Treasury Secretary Janet Yellen expressed apprehension about Chinese industrial overcapacity's adverse effects on the American economy. Yellen, currently engaged in discussions in China, emphasized the importance of rectifying macroeconomic imbalances, underscoring the need for a level playing field to benefit both American and Chinese stakeholders.

As tensions simmer between global economic powerhouses, Wang reiterated China's commitment to safeguarding the interests of its firms while emphasizing the pivotal role played by the country's EV sector in global climate action efforts.

In essence, amidst international scrutiny and geopolitical dynamics, China's EV industry remains steadfast in its pursuit of innovation-driven growth, challenging perceptions and reshaping the global automotive landscape.

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