HONG KONG (AP) — China’s Commerce Ministry has protested a choice by the European Union to research exports of Chinese electrical autos, saying Thursday that it's a “protectionist” act geared toward distorting the availability chain.

The EU introduced Wednesday it should probe authorities subsidies supplied to Chinese automakers that the EU contends maintain EV costs artificially low. China has turn into the largest marketplace for electrical autos after investing billions in subsidies to achieve an edge. Automakers like BYD and Geely have rapidly gained market share after launching gross sales of EVs to Japan and Europe.

“What I want to emphasize is that the investigation measure that the European Union plans to take is to protect its own industry in the name of fair competition,” Commerce Ministry spokesperson He Yadong mentioned at a briefing in Beijing.

“It’s naked protectionist behavior that will seriously disrupt and distort the global automotive industrial chain and supply chain including the European Union, and will have a negative impact on China–EU economic and trade relations,” he mentioned.

In a press release, the ministry urged the EU to create a “fair, non-discriminatory and predictable” market atmosphere.

In China, EV costs begin as little as 100,000 yuan ($14,500) for a compact SUV with a 400-kilometer (250-mile) vary on one cost.

On Thursday, Cui Dongshu, head of the China Passenger Car Association, additionally opposed the investigation in feedback written on his WeChat social media account.

“I personally firmly oppose the EU’s evaluation of China’s new energy vehicle exports, not because it has received huge state subsidies, but because China’s industrial chain is highly competitive,” Cui mentioned.

He mentioned that China had phased out new vitality subsidies in 2022.

Cui urged the EU to take an “objective view of the development of China’s electric vehicle industry” as a substitute of utilizing what he mentioned are financial and commerce instruments to extend the prices of Chinese electrical autos in Europe.

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