The Point: What's behind the China-EU electric vehicle spat?

 

Are Chinese subsidized electric vehicles (EVs) flooding European markets?

This month, President of the European Commission Ursula von der Leyen announced that she would launch an anti-subsidy investigation into Chinese electric vehicles. She claimed the prices for the cars are kept artificially low by huge state subsidies. She added that, "Global markets are now flooded with these cheaper cars, which distorts our market." This decision comes after EU data indicated that China's share of the new energy market in Europe has risen to 8 percent and could probably reach 15 percent by 2025. Is her suspicion grounded in facts? Why are Chinese-made EVs competitive? Has China kept prices artificially low by subsidizing car manufacturers? How will the anti-subsidy probe affect China-EU ties? Guests:

• Liu Baocheng, Dean of the Center for International Business Ethics at the University of International Business and Economics.
  
• Daniel Gros, Director of the Institute for European Policymaking at Bocconi University.
  
• Prof. John Quelch, from Herbert Business School, the University of Miami.