The Chinese Minister of Commerce, Wang Wentao, is currently on a trip to Europe, delivering a clear message: the claims made by the United States and Europe regarding Chinese overcapacity in production and “state dumping” in the electric car sector are unfounded.
During a meeting in Paris with major Chinese automakers, including BYD, CATL, and Geely, Wang reiterated that Chinese automobiles excel in innovation and “supply chain perfection,” rather than relying on subsidies.
China’s Defense and Meeting with De Meo
According to a statement from the Chinese Ministry of Commerce on April 8, 2024, Wang emphasized that Chinese manufacturers do not rely on subsidies to gain competitive advantages. Instead, he stated that Chinese companies rely on continuous technological innovation, a flawless production system, and supply chain, as well as market competition for rapid development.
Moreover, his trip to Europe aimed to meet with strategic partners, including the President of ACEA, the European Automobile Manufacturers’ Association, and CEO of Renault, Luca De Meo. Both expressed concerns about mutual market openness. Nevertheless, De Meo underscored the importance of “reciprocity” and urged China to bring more of its supply chain into the European continent, precisely the innovation mentioned by Wang.
The automotive industry has become a central aspect of international trade relations, with tensions escalating among major economic powers. While the United States pressures Beijing to curb industrial overcapacity, China defends its economic development model, emphasizing the importance of innovation and market competition.
In any case, De Meo reiterates the need for synergy among manufacturers, as he previously did in Brussels, akin to what happened with Airbus.