Trade and Competitiveness - EU Launches Probe into Chinese Electric Car Subsidies

Is a new trade war in the offing? “Global markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies. This is distorting our market,” European Commission President Ursula von der Leyen told EU lawmakers on Wednesday.

The last trade war centred on solar panels. Now e-vehicles are in the spotlight. This will be an excellent applied topic to follow for Year 13 students as they cover comparative advantage, globalisation and trade protectionism.