The European Union (EU) announced that it will launch an investigation into Chinese electric vehicle (EV) subsidies, a move that might benefit Taiwan’s automotive supply chain in the near future.
EU Commission President Ursula von der Leyen says that China’s government subsidies have resulted in artificially lower-priced Chinese EVs flooding the global market. She said that such actions are unacceptable since they distort competition, prompting the anti-subsidy probe. The statement comes from her annual address to the European Parliament at Strasbourg on Wednesday local time.
The EU's action comes as Chinese automakers are increasingly targeting the European market. Chinese EV sales in Europe grew by nearly 55% in the first seven months of 2023, reaching a market share of 13%.
The probe is significant as it signals the EU’s determination to protect its own automakers from unfair competition. The investigation could also impact Taiwan's EV industry. Taiwan Rating analyst Hsu Chih-ching (許智清) says Chinese suppliers may face more obstacles in the United States while Taiwanese suppliers may have more opportunities. Hsu also says that Taiwan's EV industry needs to merge and acquire other companies to catch up with other Asian countries.