China's Commerce Minister To Address Concern About EV Subsidies in Paris Talks

China’s EV talks: China's Commerce Minister, Wang Wentao, is slated to embark on a journey to Paris, aiming to engage in crucial discussions concerning China's burgeoning export of affordable electric vehicles (EVs) into the European market.

With four insider sources disclosing to Reuters in late March, the agenda of Wang's visit will primarily focus on addressing the European Commission's investigation into potential unfair subsidies benefiting China's EV industry. This investigation has raised significant concerns about the influx of Chinese EVs into the European market and its potential impact on the competitiveness of European automakers striving to produce cost-effective electric vehicles.

The European Commission's estimations that China's EV market share in Europe could rise to 15 per cent by 2025 have further highlighted the urgency of resolving these trade-related issues. China's stance, refuting claims that its EV industry's success hinges solely on subsidies, has prompted rigorous scrutiny from the EU regarding fair trade practices.

Wang's itinerary includes pivotal meetings with Renault's CEO, Luca de Meo, who also chairs the European Automobile Manufacturers' Association (ACEA), underscoring the gravity of the discussions surrounding the EV subsidy investigation.

Furthermore, Wang's visit is notably significant against the backdrop of China's retaliatory move to launch an investigation into European brandy exports, symbolizing the complex interplay of trade dynamics between China and the EU.

Following his engagements in Paris, Wang is poised to participate in a China-Italy business forum in Verona alongside Italy's Foreign Minister Antonio Tajani, highlighting China's multifaceted diplomatic and economic engagements in Europe.

The outcome of Wang's visit holds substantial implications for trade relations between China and Europe, with both parties endeavouring to address concerns over trade imbalances while fostering mutual cooperation and economic stability.

With Reuter's inputs