By Li Panpan
(JW Insights) Oct 19 -- European countries have different views on the EU's anti-subsidy probe into Chinese EV announced on October 4, while the US is busy dealing with its worker strikes, said JW Insights in a recent report.
French Finance Minister Bruno Le Maire has publicly called for an investigation into Chinese electric vehicles to help boost locally-produced cars and avoid investing French public funds in foreign-made products. According to French press reports, about 40% of France's electric vehicle purchase subsidies in the first quarter of 2023 went to products from Chinese companies, and French cars are almost negligible in the Chinese market, so they are not too worried about incurring counterattacks.
Germany's attitude is precisely the opposite. Earlier, German Chancellor Scholz said the investigation can't trigger a trade war. But, German Deputy Prime Minister and State Minister for Energy, Agriculture, Environment and Rural Areas Robert Habeck acknowledged that German industry is worried about retaliation.
The German government has opposed the probe, and established European car companies have also said "NO." BMW Group CFO Myrtle said frankly: "This will not only cause BMW to suffer losses but also affect all international car manufacturers doing business in China.
The United States is looking embarrassed during worker strike. The rapid development of the EV industry poses a huge challenge to traditional car companies and their employees in the country, said the report.
Gabriel Felbermayr, director of the Austrian Institute of Economic Research (WIFO) in Vienna, believes that the EU's current approach to launching an investigation is "sitting in a glass house and throwing stones out" (a German idiom meaning that if the other party fights back, the glass house will also be shattered).
Zhao Yi, vice general manager of JW Insights' Consulting Business Division, said that the EU probe's impact on Chinese companies is limited overall. Still, it comes at a stage when Chinese car companies are rapidly expanding overseas, which may disrupt the strategies of many and force them to set up factories in Europe. The subsequent impact remains to be seen.
