According to a new report from the German Kiel Institute, Chinese BYD, which is also present in Denmark, has received billions of euros in support from the Chinese state.
The EU wants it investigated. But even now the German Kiel Institute believes it is ready with the answer.
Because yes, say the Germans, Chinese car brands have received the equivalent of billions of euros in government subsidies from China.
Specifically, the Kiel Institute believes it can prove that BYD alone in 2022 received at least 2.1 billion euros, corresponding to 16.5 billion Danish kroner, in government subsidies from China.
– Subsidies such as those given to BYD have made it possible for Chinese companies to scale up quickly, dominate the Chinese market and facilitate increasing expansion in EU markets, writes the Kiel Institute in its report .
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However, the institute says at the same time that it has come up with a very conservative estimate of how much a brand like BYD has received in state support.
The report comes shortly after the EU's competition commissioner Margrethe Vestager has threatened China with sanctions on top of the supposed state aid to the country's car industry.
– The EU has launched an investigation into illegal state aid to the Chinese car industry. If we come to the conclusion that China has given illegal state aid, then we will introduce restrictions, says the former leader of Radikale Venstre in Denmark.
The President of the European Commission, Ursula von der Leyen, is also personally convinced that the Chinese take money from the treasury and put it in the pockets of the country's car manufacturers.
Back in March, the EU also announced that the punitive duty currently being considered to be imposed on Chinese cars may be retroactive. Read more about it here .
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