Chinese automobile manufacturers have experienced a rapid rise in recent years and have begun to show their influence around the world and especially in Europe. This situation seems to have worried the European Union. According to Automotive News Europe, the EU Senate will hold a vote in the near future to evaluate the influence of Chinese automakers on the European market.
Speaking in the Senate recently, Commission President Ursula von der Leyen stated that the European market has begun to be filled with “cheap Chinese cars” and added: “Thanks to China's subsidies, prices are kept artificially low. This has turned the economy of the European automobile market upside down. "Just as we do not accept the distortion of our market from within, we should not accept influences from outside."
According to these allegations, taxation of up to 9 percent will be imposed on Chinese automobile brands after an investigation that will last approximately 27.5 months. The investigation initiated by the European Union will focus on China's economic practices and it is thought that steps should be taken to balance trade relations.
China's rapid rise in the automobile industry has become a serious source of competition for the automobile industry in Europe. EU members, especially Germany, are following this situation closely. German Economy Minister Robert Habeck believes that the entry of cheap electric vehicles into the EU market, thanks to Chinese subsidies, could lead to economic imbalance.
Habeck said, "The issue is not to prevent environmentally friendly and cheap cars from entering the EU market, but to preserve competition," and emphasizes that the investigation should be carried out quickly.
France is also worried about this issue. Recalling the previous scandal in the solar panel industry, the country's Minister of European Union and Foreign Affairs, Laurence Boone, says that China's electric vehicles, made cheaper with subsidies, may threaten French companies.
So how does China react to this situation? The Chinese Government argues that the investigation will seriously affect the global automotive industry and supply chain. China's Minister of Commerce rejects allegations about subsidies and states that they will protect the legitimate rights of Chinese companies.
However, accessing details on subsidies may be difficult due to China's closed economy. Some sources claim that China provides significant facilities to electric vehicle manufacturers, but China denies these claims.
As a result, the rapid rise of Chinese automakers in the European market worries the European Union and especially countries such as Germany. The results of the investigation and the decisions taken may affect the automobile industry and trade relations. We will continue to follow this issue closely.