China's commerce minister, Wang Wentao, has embarked on a pivotal trip to Europe, commencing with meetings with prominent Chinese electric vehicle (EV) manufacturers BYD and CATL. This visit coincides with an ongoing investigation by the European Union into potential unfair subsidies benefiting China's EV industry.
Wang convened a roundtable discussion in Paris, gathering representatives from over 10 enterprises, including Geely, to address concerns regarding alleged advantages garnered by Chinese EV firms through subsidies. He emphasized Beijing's stance, asserting that Chinese companies rely on technological innovation and market competition rather than subsidies for their competitive edge. Claims of overcapacity raised by the U.S. and Europe were dismissed as unfounded.
Wang reassured participants of the Chinese government's commitment to supporting firms in safeguarding their legitimate rights and interests.
Discussions primarily focused on the European Commission's investigation initiated last year, aimed at determining whether tariffs should be imposed to protect European car manufacturers. China's significant advantage over European counterparts in developing low-cost EV models was highlighted.
Wang's agenda also includes meetings with Renault's chief executive Luca de Meo, who concurrently serves as the acting chairman of the European Automobile Manufacturers' Association (ACEA). Additionally, Wang is slated to engage with executives from the cosmetics industry, highlighting the diverse scope of his visit.
French Finance Minister Bruno Le Maire is scheduled to hold discussions with Wang, further indicating the diplomatic significance of this visit. However, the Chinese trade ministry refrained from commenting on these developments.
Meanwhile, U.S. Treasury Secretary Janet Yellen, currently in China, has highlighted growing global concerns over China's industrial capacity, stressing its adverse effects on both China and producers in other countries.
This engagement underscores the complexities of international trade dynamics and the efforts of stakeholders to address concerns and foster mutually beneficial relationships.
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