[ti:EU to Investigate Chinese EV Makers over Competition Concerns]
[al:As It Is]
[ar:VOA]
[dt:2023-10-23]
[by:www.voase.cn]
[00:00.00]Chinese automakers are making gains in Europe's electric vehicle (EV) market.
[00:08.83]The competitive threat has led the European Union to launch an investigation into China's government support for its EV industry.
[00:19.46]The investigation adds to technology-related tensions between the West and China. 
[00:27.30]At the same time, China is one of Europe's biggest trading partners and the world's biggest auto market.
[00:36.33]Chinese EV makers like Europe because auto import taxes are just 10 percent compared to 27.5 percent in the United States, automotive expert Matthias Schmidt said.
[00:52.64]Europe also has the world's second-biggest EV battery market after China.
[00:59.59]Car buyers in Europe like how Chinese EVs are not costly yet filled with features and stylish designs.
[01:09.05]Concerns about the threat to local carmakers and jobs are just not as important for some European buyers who face increased living costs.
[01:21.09]British retiree John Kirkwood replaced his Volkswagen Passat three years ago with an MG5 station wagon.
[01:30.87]The MG5's price was much lower than the price of the nearest competitor - a Kia that cost thousands more.
[01:40.76]"It's nice. It's quiet, it's refined" and very quick, Kirkwood said, adding that he had few concerns about the Chinese ownership of the British brand.
[01:53.68]MG is owned by SAIC Motor, China's biggest automaker.
[01:58.62]SAIC is the largest Chinese EV company in Europe too. Another Chinese automaker, BYD, is growing fast.
[02:09.56]Other companies with complete or partial Chinese ownership include Geely, which owns Sweden's Volvo and a number of EV brands including Polestar, Lynk & Co. and British sports car maker Lotus.
[02:26.44]Chinese EV makers combined sales are a small part of the 9.2 million vehicles sold in Europe every year.
[02:36.31]But Chinese EV builders have been taking up a piece of the smaller EV market at a fast rate.
[02:44.47]Schmidt's information suggests that Chinese automakers make up only about three percent of Western Europe's total car market, but Chinese manufacturers have 8.4 percent of the EV market.
[03:01.25]That number is up from 6.2 percent last year. 
[03:05.53]In 2019, it was almost zero.
[03:09.20]The sales increase is leading some to worry about Europe's automotive industry.
[03:16.16]That powerful industry is mainly centered in France and Germany and employs many workers.
[03:24.50]Last month, European Commission President Ursula von der Leyen said, "Global markets are now flooded with cheaper Chinese electric cars," with prices "kept artificially low by huge state subsidies."
[03:41.04]A subsidy is government support that permits a company to sell products at unfairly low prices.
[03:49.37]The commission, the EU's executive arm, officially opened its investigation this month, saying it would take up to 13 months and could result in import duties, another word for taxes.
[04:05.22]China voiced "strong dissatisfaction" and promised to "firmly safeguard" Chinese companies' rights. 
[04:13.18]The Chinese Commerce Ministry said the EU investigation is based on "subjective assumptions," lacks enough evidence and goes against World Trade Organization rules.
[04:27.74]Executives at Shanghai-based Aiways, a company headed by Volvo's former China sales chief, rejected accusations that the Chinese government unfairly supports its businesses.
[04:42.61]"We're not selling inside China, we're not being subsidized in China," said Alexander Klose, vice president of overseas operations. 
[04:54.04]Klose said his company does get "some subsidies for putting a plant somewhere," but added that he believes that is "what everybody has in Europe."
[05:05.55]The EU should be working on getting to a "green future "rather than keeping competition out," he said.
[05:13.62]I'm John Russell.