BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank
banner

EU-China EV Subsidy Comparison



  Feb 01, 2024

EU vs China:EV Subsidies



Q: Why has the European Union launched an investigation into Chinese subsidies for electric vehicles?

A: The EU is investigating Chinese subsidies to determine if they provide Chinese EV manufacturers with an unfair competitive advantage, which could have implications for the European market and its automotive industry.

Q: What concerns does Europe have regarding Chinese EV subsidies?

A: There’s a concern that systematic government support for Chinese EV manufacturers could lead to a repeat of what happened to Europe’s solar industry, which struggled against low-cost competition from China.

Q: How do Chinese EV subsidies compare to those in the West?

A: Chinese subsidies have been more extensive and long-term, involving direct grants, tax incentives, and access to below-market credit. The Inflation Reduction Act in the U.S. has introduced significant subsidies but is relatively recent compared to China’s decades-long support.

Q: What makes Chinese electric car companies competitive?

A: Chinese companies have been innovative, investing in cheaper battery chemistry and becoming very competitive, with some companies like BYD nearing Tesla’s sales. Vertical integration, where companies control both car and battery production, adds to their competitiveness.

Q: How might Chinese EVs affect the European and U.S. markets?

A: As Chinese EVs become more competitive, there is the possibility that European and U.S. markets may consider allowing Chinese manufacturers to establish production within their borders, which could challenge domestic manufacturers.

Q: What is the significance of the EU’s subsidies investigation?

A: The investigation will help the EU navigate trade relations with China, balance protecting its own automotive industry, meet climate goals, and address the need for more EVs without causing significant trade disputes.


Share:
 

Get a call back

Fill the below form to get free counselling for UPSC Civil Services exam preparation

 
UPSC DAILY CURRENT AFFAIRS

 
ANTARCTICA: BRUNT ICE SHELF CALVING EVENT
 
Northern Lights: Mysteries & Marvels
 
GIFT SEZ & IFSCA: Gujarat's Global Financial Hub
 
Manual Scavenging in India:Laws and Rulings
 
Global Public Goods
 
SISUPALGARH ARCHAEOLOGICAL SITE
 
Unlocking Justice: Plea Bargaining in Indian Law
 
PANINI'S SANSKRIT GRAMMAR
 
Statute of Westminster 1931 and India
 
THE MYTH OF TRAILOKYAVIJAYA AND ITS CULTURAL SIGNIFICANCE
 
Outer Space Treaty (OST) and India
 
Indian Soldiers Remembered: Heliopolis WW1 Memorial
 
India's Participation in the Artemis Accords
 
Gender Dynamics in Ancient India: Insights from Romila Thapar
 
Social Stock Exchange (SSE)