China’s Commerce Minister, Wang Wentao, is scheduled to arrive in Paris on Sunday for discussions expected to focus on China’s burgeoning export of affordable electric vehicles (EVs) to the European market. The talks are set against the backdrop of an ongoing European Commission investigation into whether China’s EV industry has benefitted from unfair subsidies.
According to four sources briefed on Wang’s trip, the discussions will address the European Commission’s concerns that Chinese EVs are benefiting from substantial state subsidies, potentially giving them an unfair advantage in the market. The European Commission has warned that China’s share of EVs sold in Europe could reach 15% by 2025.
China has vehemently denied these allegations, calling the EU inquiry “protectionist.” Analysts argue that China’s success in the EV market stems from a variety of factors, including its dominance in the battery supply chain, innovative practices, and fierce competition within its domestic market, all of which contribute to lower prices.
During his visit, Wang is expected to meet with Renault chief executive Luca de Meo, who also serves as the acting chairman of the European Automobile Manufacturers’ Association (ACEA). Additionally, he is set to attend a dinner with executives from the cosmetics industry.
The European Commission has already conducted inspections at major Chinese automakers BYD, Geely, and SAIC as part of its inquiry. France has voiced its support for the anti-subsidy probe, with Paris backing the European Commission’s efforts.
BYD’s Europe chief executive Michael Shu will reportedly accompany Wang during his trip, along with representatives from SAIC and Geely. China has launched its own investigation into European brandy in response to the EU’s EV probe, with France being a major exporter of brandy to China.
Wang’s itinerary also includes a meeting with the Bureau National Interprofessionnel du Cognac (BNIC), a brandy trade group, as well as attendance at a China-Italy business forum in Verona, Italy, on Friday, alongside Italian Foreign Minister Antonio Tajani.
