EU launches anti-subsidy investigation into  Chinese EVs

• The European Commission to launch an investigation into subsidies given to electric vehicle makers in China.
• The announcement was made by the President Ursula von der Leyen.
• The EU is weighing tariffs to curb the ‘flood’ of Chinese EVs.

The European Commission launched a sweeping investigation into whether to impose tariffs to curb cheaper Chinese electric vehicle (EV) imports while protecting producers in the European Union.

This was announced by the European Commission President, Ursula von der Leyen, during her annual address to the European parliament.

The announcement is yet another way for Europe to de-risk from dependency on Beijing instead of completing cutting ties while also serving to endear the President as she looks for re-appointment for a second term.

The Commission will have up to 13 months to conduct its investigation. However, provisional measures have been proposed no later than nine months, followed by four months to impose definitive measures.

Chinese EV makers have been stepping up efforts to expand overseas as data from China Passenger Car Association(CPCA) showed. According to CPCA, China’s auto exports surged 31% in August following a 63% jump in July.