EU launches investigation into Chinese EV subsidies over concerns of unfair competition

EU believes Chinese EV makers benefit from excessive state subsidies, allowing them to undercut prices of EU-made models.
Chinese EV brands like BYD rapidly gaining market share in Europe, accounting for 8% of new EVs sold this year.
Probe could result in punitive tariffs on Chinese EVs to counterbalance subsidies and protect European automakers.
China denounces investigation as "naked protectionism," warns it could damage economic relations with EU.
Some believe probe driven by political rhetoric to defend EU auto industry rather than fairness concerns.