On October 29, 2024, the European Commission unveiled new countervailing duties on Chinese electric vehicle (EV) imports, effective the following day. This move is framed as part of a broader aggressive strategy to safeguard European industries, but it overlooks a significant reality. The EU itself has long been an active player in subsidizing its own green transition, including the EV sector.

Recent EU statistics reveal that Brussels and its member states have poured substantial financial support into the “new trio” industries—lithium batteries, photovoltaic products, and electric vehicles—through a mix of grants, tax breaks, low-interest loans, loan guarantees, and price subsidies. These subsidies, which are often justified by the need to boost competitiveness and drive regional development, have granted the EU a commanding role in emerging industries.

Although the EU has rules to limit state funding, it has allowed member states to provide targeted financial support. On top of this, the EU itself has established dedicated funds for direct grants. In 2022 alone, the EU allocated a staggering 25 billion euros to solar power through its various financial mechanisms. This extensive dual-channel support, blending EU funds with member-state aid, has given European green industries a major competitive edge, which stands in sharp contrast to the tariffs now imposed on China’s own green transition.

The European Union, under the pretext of advancing the green transition and aiding........

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