Chinese President Xi Jinping and European Commission President Ursula von De Line.
Chinese President Xi Jinping and European Commission President Ursula von De Line.
China Trade War: In the world of electric cars, China has spread its foot across the world. There would hardly be any country where Chinese e-cars are not sold. China is not only ahead in technology but also keeps prices low. This is the reason why electronic items from China are purchased the most. For this reason, China has found a unique way to establish its dominance in E-Car Marketing. However, even before China can establish its dominance in the electric car segment, the European Commission has taken a big step. According to the commission, it will investigate the subsidies given by the Chinese government to electric car companies.
Chinese government gives subsidy to car companies
According to media reports, the European Commission has made major allegations against Chinese e-car companies and the Chinese government. The European Commission says that Chinese companies deliberately keep the price of their e-cars low, for this they are given subsidies from the Chinese government. It is being alleged that the Chinese government gives subsidies to automobile companies and deliberately asks them to sell their cars at lower prices across the world, so that the Chinese market can be established across the world and China can control the market price as per its wish.
European Commission starts investigation against China
European Commission President Ursula von De Line said in her annual address last Wednesday that global markets have been flooded with cheap electric cars. By giving huge government subsidies to automobile companies, their prices are being deliberately kept low. Let us tell you that the phone call Day Lion was pointing towards China. The European Commission has started an investigation into cheap Chinese electric cars being sold in Europe. An investigation is being conducted into whether punitive duties should be imposed on cheap Chinese cars to protect European carmakers.
Investigation will also be done against BMW and Tesla
Apart from European companies producing in China, Renault, BMW, American company Tesla will also be included in this investigation of automobile companies. Generally it is seen that this type of investigation is done after receiving a complaint, but this time the European Commission itself has started investigating the subsidies of the Chinese government. Now it remains to be seen that if China is found guilty in the investigation, what action will be taken against it and what consequences it may have to face.
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