Chinese Commerce Minister to hold EV talks in Paris

Chinese Commerce Minister Wang Wentao will hold talks in Paris on Sunday, which are expected to cover China’s fast-growing exports of cheap electric vehicles (EVs) to the European market.

In late March, four sources with knowledge of Wang’s situation told Reuters that discussions would focus on the European Commission’s investigation into whether China’s electric vehicle industry benefited from unfair subsidies.

European automakers are working to produce lower-cost electric vehicles and eliminate China’s lead in developing cheaper models.

The European Commission, the EU’s executive agency, predicts that China’s market share of electric vehicles sold in Europe may reach 15% by 2025. The Commission said that Chinese electric vehicles benefit from huge state subsidies and is studying whether to impose punitive tariffs.

China has rejected claims that its electric car industry is thriving on subsidies and has called the EU investigation “protectionist”. Factors such as China’s dominance of the battery supply chain, innovation and fierce competition in a crowded domestic market also contributed to the price decline, analysts said.

A person familiar with the meeting said Mr Wang will meet Luca de Meo, Renault chief executive and acting president of the European Automobile Manufacturers Association (ACEA), on Sunday.

He is also expected to attend a dinner with cosmetics industry executives later Sunday, two other sources familiar with the plans said.

French Finance Minister Bruno Le Maire said he would hold talks with Wang Yi on Monday. China’s Ministry of Commerce did not respond to a request for comment.

European Commission investigators earlier this year inspected leading Chinese carmakers BYD, Geely Automobile Holdings and SAIC Motor as part of the probe. Paris supports countervailing investigations.

BYD Europe CEO Michael Shu will accompany Wang Yi on the trip, a person familiar with the matter said. Representatives from SAIC and Geely will also be traveling, Reuters reported last month.

BYD did not immediately respond to a request for comment.

China launched an anti-dumping investigation into brandy in January in response to the European electric vehicle investigation. France accounts for almost all EU brandy exports to China.

An association official said Mr Wang would meet with brandy trading group National Cognac Interprofessional Bureau (BNIC) and company executives on Monday.

China said it was selecting Martell, Hennessy and Rémy Martin as sample companies for its investigation.

The Italian government said Wang Yi will attend the China-Italy Business Forum in Verona, Italy, on Friday with Italian Foreign Minister Antonio Tajani.