China's Great Wall Motor becomes first EV maker to respond to EU anti-subsidy probe

China's Great Wall Motor has officially responded to the European Commission's anti-subsidy investigation into Chinese-made electric vehicles (EVs). The automaker emphasised the importance of a fair and open trade environment while calling for transparency and equity in trade relations.

Tensions have been rising between China and the European Union, partially due to China's growing ties with Moscow following Russia's invasion of Ukraine, while the EU aims to reduce its dependence on China in its pursuit of a green transition.

Great Wall was the first automaker to provide its responses to the European Commission, and its president, Mu Feng, expressed the company's confidence in global competition. He noted that Europe is a key strategic market for Great Wall Motor and revealed plans to establish a plant in the region. The company has begun the process of selecting a site for this facility, aiming for full production and sales capabilities.

Tariff barriers on Chinese EV imports

The European Commission initiated its investigation to determine whether to impose tariff barriers on Chinese EV imports, which are perceived as benefiting from state subsidies. The investigation encompasses EVs produced by both Chinese manufacturers and foreign companies operating in China, including Tesla, BMW, and Renault.

China has criticized the EU for the short time provided for consultations in the inquiry, stating that it lacked sufficient evidence and did not conform to World Trade Organization (WTO) rules.

European automakers are striving to catch up with Chinese manufacturers in producing lower-cost EVs, particularly as Chinese companies like BYD, Xpeng, and Nio expand their international presence.

In terms of sales of pure electric and plug-in hybrid vehicles in China during the first nine months of the year, Great Wall Motor ranked eighth, according to industry data.

(With Reuters Inputs)