BYD fires back at state-aid accusations

BYD says the subsidies it receives from the Chinese government are “very limited.” In the company’s first public comment following the launch of an EU probe into Chinese anticompetitive practices in the electric vehicle market, European president Michael Shu rejected accusations that BYD is getting significant amounts of state aid. “Our success isn’t because of the subsidy, it’s because we have unique technology  and our management efficiency is high. We invested in this technology much earlier, and much more, than competitors. It’s not because of the subsidy,” he told the Financial Times.

European Commission president Ursula von der Leyen announced the investigation during her State of the European Union address last year. If injury to European firms is demonstrated, import tariffs may be raised. Particularly French car makers have reportedly been pushing for such protective measures, whereas their German counterparts oppose them out of fear for retaliation from Beijing.

BYD is currently constructing a plant in Hungary, which is expected to start production by the end of next year.