China says innovation built EV success, rejects EU subsidy probe

China’s automakers’ fast growth in electric cars follows innovation amid tough competition, the nation’s commerce minister said during a visit in Paris, rejecting the European Union’s probe into subsidies for the sector.

Accusations by the United States and Europe that domestic overcapacity and government aid are propelling Chinese-made EVs into Europe are “groundless,” Wang Wentao told a roundtable meeting on Sunday attended by Geely, SAIC and BYD as well as top battery maker CATL, according to a readout by the ministry.

Wang’s pep talk to local industry representatives in Europe comes as the EU moves closer to imposing additional tariffs on rising Chinese electric vehicles imports to the bloc over accusations that subsidies are distorting its domestic market. France has been advocating a tougher stance, and has already limited domestic subsidies to exclude most Chinese EVs.

The rapid development of Chinese EV companies is due to “continuous technological innovation,” advanced local supply chains and intense competition, the ministry cited Wang as saying.

Automakers NIO Europe, XPeng and Cher, also attended the meeting, the Chinese Chamber of Commerce to the EU said in a statement. The EU Commission’s anti-subsidy probe kicked off in September, with President Ursula von der Leyen later citing overcapacity as a reason for the investigation.

Wang re-iterated that the EU probe is “protectionist,” adding that normal export activities driven by globalization were being incorrectly labeled as evidence of overcapacity, the chamber said.

Wang also struck out at the EU’s de-risking drive, which aims to reduce dependencies on China, saying it would undermine the bloc’s environmental ambitions.

“Trade protectionism under the guise of “de-risking” runs counter to the objectives of promoting green transformation. The EU should not champion green development while simultaneously wielding the “big stick” of trade protectionism,” he added, according to the chamber statement.