The EC has published a notice of initiation, officially kickstarting its investigation into possibly illegal Chinese electric car subsidies. 

The document states that the EC has found evidence of loans at favourable rates, tax exemptions and components bought very cheaply. Should it consider this enough evidence of unfair practices, the bloc could impose tariffs on Chinese car manufacturers above the standard 10 per cent EU rate.

The probe was first announced last month, in EC president Ursula von der Leyen’s State of the European Union address. In the speech, von der Leyen warned that global markets were being “flooded” with cheaper Chinese electric cars.

“The EV sector holds huge potential for Europe’s future competitiveness and green industrial leadership,” she said. “EU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market...