EU Launches Investigation into China's EV Industry Over Unfair Subsidy Allegations, Drawing Strong Criticism

The EU has launched an investigation into China's electric vehicle industry, alleging unfair subsidies that threaten EU manufacturers. China strongly criticized the probe as "naked protectionism".

The investigation covers Chinese brands like Tesla, VW, and BMW made in China. Germany, with major auto exposure, opposes the move over retaliation fears.

While Chinese EVs are still a small EU share, they grew over 100% in 2022. Chinese prices were 20% below European models.

The dispute dominated a recent EU-China meeting. China raged against the probe and EU 5G network bans on Huawei/ZTE.

The investigation comes as the EU looks to restrict trade ties and critical technologies with China. The EU published 10 techs that may face controls.