Commerce minister refutes EU's accusation that China has 'overcapacity' in EV production

Release time：2024-05-21 14:42:41 Source：Cultural Currents news portal

Chinese Commerce Minister Wang Wentao on Sunday refuted accusations of overcapacity in China's electric vehicle (EV) industry, at a roundtable meeting with Chinese EV companies held in Paris.

The minister is reportedly making a visit to Europe over the European Commission's investigation into Chinese EVs.

Wang noted the accusations by the US and Europe of "overcapacity" were categorically groundless. The rapid development of the Chinese EV industry is achieved thanks to Chinese enterprises’ vigorous innovation, the country’s supply chain efficiency and free market competition, not subsidies.

He emphasized that development of the Chinese EV industry has made a significant contribution to global efforts to address climate change and the transition to a green, low-carbon world.

He also said that China will support Chinese EV companies in defending their rights and interests.

The China Chamber of Commerce to the EU (CCCEU) and Chinese companies Geely, SAIC, BYD, and CATL attended the roundtable, according to media reports.

The roundtable came as the EU made moves targeting Chinese EVs over recent months, amid accusations from the US and Europe over China's production overcapacity in EVs.

Wang emphasized the importance of innovation and risk management in the face of external challenges and uncertainties. He highlighted the need for deepening cooperation with local companies abroad to contribute to a global green transformation.

Chinese EV companies said they will continue uphold open cooperation, actively address trade frictions and aim to achieve win-win outcomes through practical cooperation with their European partners.

Following the EU’s investigation into Chinese-made EVs in October 2023, it required registration for EV imports originating in China in March this year.

The EU's probe into Chinese EVs is not conducive to deepening cooperation in the new-energy industries of both parties and it will also affect the interests of broad EU consumers, analysts said.

The CCCEU expressed concern over the special customs registration process in a statement sent to the Global Times in March.

The chamber highlighted that the recent surge in Chinese EV imports reflected increasing demand for green EVs in Europe and underscored Chinese car companies' commitment to fostering opportunities in the European market.

"We hope that the European side will effectively safeguard the legitimate rights and interests of Chinese enterprises, and establish a fair, impartial and non-discriminatory business environment for them," the CCCEU said.

"This, in turn, will facilitate our joint contribution to the global low-carbon and green transformation," the chamber stated.

China is the world's largest auto exporter, having surpassed Germany and outpacing Japan. The EU market accounted for 47 percent of China's EV exports last year, according to a report by Citi Research in January.

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