At a CSIS event yesterday, Executive Vice President and EU Trade Commissioner Valdis Dombrovskis provided some details on the status of the EU anti-subsidy investigation on Chinese electric vehicles, as well as on discussions with the U.S. on these issues.

On both sides of the Atlantic, concerns have been expressed recently about the threat of Chinese electric vehicles (EVs) in relation to security and economic competition.

Last Friday, the Biden administration proposed new rules that offer guidance on how tax credits for the sale of electric vehicles will apply when the batteries and the materials that power them are made in China and other "foreign entities of concern."

At the WTO Committee on Market Access meeting held on April 26-27, 2023, China raised issues related to the EU Carbon Border Adjustment Mechanism (CBAM), Indian restrictions on solar panels, and Türkiye's (formerly known as Turkey) discriminatory tariffs on electric vehicles.

A spokesperson from China's Ministry of Commerce (MOFCOM) criticized EU practices in the countervailing investigation on electric vehicles (EVs) from China. The spokesperson also talked about the status of Micron in China and China's outbound investment over the first ten months.

Senator Joe Manchin (D-WV), a key architect of the Inflation Reduction Act's provisions on tax credits for electric vehicle purchases, has expressed concern to the Biden administration that Chinese companies may try to benefit from the law.

In recent weeks, there has been pressure to limit potential Chinese EV imports to the U.S., with President Biden himself now seeming to join the chorus of voices worrying about competition with Chinese EVs.