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China says its EV firms do not rely on subsidies to gain competitive advantage
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China says its EV firms do not rely on subsidies to gain competitive advantage
Apr 7, 2024 6:11 PM

BEIJING, April 8 (Reuters) - China's electric vehicle

companies do not rely on subsidies to gain a competitive

advantage and accusations by the U.S. and Europe of

"overcapacity" are groundless, Commerce Minister Wang Wentao

said on Sunday in Paris.

Wang made the remarks at a roundtable meeting of Chinese

firms in Paris, where he is set to discuss China's exports of

EVs into the European market among other things.

Representatives of more than 10 enterprises such as Geely

, BYD and CATL attended the

meeting, according to a statement from the commerce ministry on

Monday.

"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," Wang said.

"The United States and Europe and other accusations of

"overcapacity" are groundless."

Wider discussions will centre around the European

Commission's investigation into whether China's EV industry has

benefited from unfair subsidies.

The Commission has begun an investigation to determine

whether to impose tariffs on exports to protect European car

makers. It is due to conclude by November, although the EU

executive could impose provisional duties earlier.

U.S. Treasury Secretary Janet Yellen is currently in China

where she has said global concerns are growing over China's

excess industrial capacity, noting that it is not healthy for

China and it is hurting producers in other countries.

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