EU Escalates China Tensions With Probe to Ward Off Cheap EVs

(Bloomberg) — The European Union is launching an investigation into Chinese subsidies for electric vehicles to ward off a flood of cheap imports, an escalation that opens the door to retaliation that would hit the bloc’s carmakers hard.

Given the size of the market and its rapid growth, potential tariffs from the probe could have a far bigger impact than any previous anti-subsidy actions against Chinese imports.