Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
China’s Commerce Minister, Wang Wentao, has refuted claims that government subsidies are the sole reason behind the country’s booming electric vehicle industry. During a roundtable discussion in Paris, Wang emphasized “constant innovation” as the key driver of success, echoing comments made by leading Chinese EV manufacturer BYD.
Innovation Vs. Overcapacity: Wang made these comments during a discussion in Paris, which included representatives from over 10 Chinese companies, such as EV manufacturers Geely and BYD, and EV battery maker CATL, reported CNBC.
His remarks also come amidst rising international scrutiny of China’s EV industry. He addressed concerns about “overcapacity” raised by the U.S. and Europe, attributing China’s EV dominance to a “robust supply chain network” and healthy “market competition.”
He also highlighted the Chinese EV industry’s “important contribution to the global response to climate change as well as green and low-carbon transformation.”
The Backdrop: This discussion occurred during an ongoing investigation by the EU into potential subsidies granted to Chinese EV manufacturers. The EU is considering tariffs to “level the playing field” for European companies. This move follows a significant increase in Chinese EV imports.
In February, BYD's European president, Michael Shu, responded to the EU’s probe and said the Warren Buffett-backed automaker’s achievements are a result of its unique technology and efficient management, and “not because of the subsidy."
U.S. Treasury Secretary Janet Yellen also voiced concerns about the potential impact of China’s industrial overcapacity on the U.S. economy during her recent visit to the Asian country. She advocated for fair competition for American businesses and workers.
China’s EV Ambitions: These developments coincide with China’s continued push in the EV market. Major Chinese carmaker Chery Auto recently announced plans for a new EV brand launch later this year. Additionally, BYD reportedly has its sights set on entering the EV pickup truck market, similar to Tesla.
Read Next: Cathie Wood’s Ark Invest Doubles Down On Tesla Despite 3.6% Plunge Amid Model 2 Rumors, Adds $22M Worth Of Shares
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by
Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.