China's EV Sector Faces Global Trade Barriers Amid $231 Billion in Subsidies

New tariffs from the EU and US challenge China's electric vehicle market, which has grown significantly with extensive government support.

China's electric vehicle industry received $231 billion in subsidies from 2009 to 2023.
The EU has imposed additional tariffs of up to 38% on Chinese EVs, following the US's recent quadrupling of tariffs.
Sales tax exemptions form a significant portion of China's EV subsidies, totaling nearly $40 billion in 2023.
The tariffs are expected to have a more substantial impact on the EU market compared to the US.
Chinese EV makers may seek to establish production facilities in the EU to mitigate tariff impacts.