BRUSSELS (AP) — The European Union is launching an investigation into subsidies that China offers to electrical car makers, the top of the bloc’s government department mentioned Wednesday, as concern grows that the help is harming European firms.

“Global markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies. This is distorting our market,” European Commission President Ursula von der Leyen advised EU lawmakers in Strasbourg, France.

“As we do not accept this distortion from the inside in our market, we do not accept this from the outside,” von der Leyen mentioned. “So, I can announce today that the commission is launching an anti-subsidy investigation into electric vehicles coming from China.”

China’s leaders have helped make the nation the most important marketplace for electrical automobiles by investing billions of {dollars} in subsidies to get an early lead in what's seen as a promising business.

Global automakers face rising competitors of their dwelling areas from Chinese manufacturers which are taking market share.

Electric car makers together with BYD Auto and Geely Group’s Zeekr unit started gross sales this 12 months in Japan and Europe. Geely additionally owns Sweden’s Volvo Cars and its all-electric luxurious model, Polestar.

“Europe is open to competition but not for a race to the bottom. We must defend ourselves against unfair practices,” von der Leyen mentioned. She didn't present particulars in regards to the investigation.

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