The European Union has declared an inquiry into the financial support provided by China for electric vehicles.

BRUSSELS (AP) — The European Union is launching an investigation into subsidies that China provides to electric vehicle makers, the head of the bloc’s executive branch said Wednesday, as concern grows that the aid is harming European companies.

“I cannot reword”

“I cannot reword”

China’s government has played a significant role in establishing the country as the largest market for electric vehicles. They have achieved this by allocating substantial funds towards subsidies, aiming to gain a competitive advantage in this promising industry.

Chinese brands are increasingly capturing market share in the home regions of global automakers, posing a growing competition for them.

This year, BYD Auto and Geely Group’s Zeekr unit initiated sales in Japan and Europe. Geely, which also possesses Volvo Cars of Sweden and its electric luxury brand, Polestar.

“I cannot reword.”