The European Union’s relationship with China is under strain, particularly regarding clean energy technologies. Evidence of alleged government subsidies for Chinese electric vehicles and solar panel manufacturers has prompted the block to consider imposing tariffs.
The European electric vehicle market (EV) has witnessed a surge in Chinese imports. This rapid growth has alarmed European policymakers, who are concerned about unfair competition due to suspected Chinese government subsidies. The European Commission launched an investigation in September 2023 and, based on “sufficient evidence,” is poised to impose countervailing duties.
This move could significantly impact Chinese EV exports to the E.U., a significant market valued at $12.7 billion in 2023.
The solar panel industry has a similar story. Europe used to lead in solar panel production, but China has since taken over and now dominates the global market. This decline comes from several factors, including lower production costs in China and an oversupply of panels.
Originally posted as “Europe-China Trade War Threatens Solar and EV Industries” in EPS News
