Car companies, lawyers, business groups and journalists all received the news at once. After seven months of speculation: 17.4 on BYD, 20 on Geely, 38.1 on SAIC and 21 on nearly all others - the tariff percentages the EU would slap on electric vehicle imports from China landed with a bang…"The whole supply chain is subsidised," said a senior official, who read through the charge sheet on a case that many predict could launch a trade war..."This means that the Chinese government provides subsidies to all operators," he continued. "Starting from the refining of lithium used in the batteries, to production of cells and batteries, to the production of BEVs [battery electric vehicles], and even transport of BEVs to EU markets."…"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," said European Commission President Ursula von der Leyen during her annual State of the Union address last September…Questionnaires were sent to the companies, each running to 60-odd pages and over 18,000 words. They demanded access to financial information and forensic levels of details on the handouts each had received from the Chinese state…"It is in your own interest to reply as accurately and completely as possible and to attach supporting documents. You may supplement your response with additional data," read the dry legalese that translated into a veiled warning that would become reality: comply with this, or you will be tariffed out of the European market…The Chinese government was also sent a batch of questionnaires, which it declined to forward to selected lithium providers and local banks on the EU's behalf…Instead, Beijing tried to kill the investigation with a series of threats that multiplied as Brussels' probe raced towards its conclusion…Their investigators turned up subsidies everywhere they looked. Lithium processers and battery makers were told by the state to sell to EV companies below market rates, they said, while the car companies were exempt from battery consumption taxes…The firms issued green bonds that government-run financial institutions were ordered to buy, and were granted concessional land, income tax breaks and cheap refinancing options mandated by the People's Bank of China, the central bank…The EU believes its companies suffered as a result. Between January 2020 and September 2023, Chinese companies increased their EU market share from 4 per cent to 25 per cent, while local rivals' share dropped from 69 per cent to almost 60 per cent, officials said.

Germany wants "serious movement" from China on the issue of tariffs on imported electric vehicles and hopes that talks in the coming weeks can stave off an escalating trade conflict that the transport minister on Friday warned could be catastrophic…As Europe's largest economy, Germany's voice carries particular weight and its leading car manufacturers have vociferously opposed the EU tariffs, fearing retaliatory measures could harm their business in the vast Chinese market…"It would be very desirable to come to an amicable solution, but it is also clear that serious movement is needed on the Chinese side," the spokesperson said during a regular news conference…"Nobody wants a trade war with China," said Volker Wissing, the transport minister from Scholz's pro-business Free Democrats coalition partner…"It would be a catastrophe for Germany and it would not be beneficial for the European Union either," he told the dpa news agency in an interview quoted by the Tagesspiegel newspaper…Europe's auto industry had warned against imposing the tariffs, with German carmakers the most exposed to any counter moves as almost a third of their sales came from China in 2023…BMW's all-electric Mini made in China is set to be hit by the highest EV tariff of 38.1% under the EU's plans, a source familiar with the matter said, a potential terminal blow for the mid-range car's sales prospects…Mass production of the roughly 35,000-euro ($37,000) vehicle, produced by a BMW and China's Great Wall Motor Co Ltd joint venture, began late last year…Germany has trodden a fine line with Beijing, wanting to "de-risk" its economy from relying too heavily on China but at the same time pushing for greater market access for its own firms.

China’s leading aircraft manufacturer said it successfully conducted the maiden flight of a new commercial aerial freight drone in northwestern China, as Beijing moves to strengthen the uncrewed vehicle market and boost its potential…It described the transport drone as “high payload and low cost”…The unmanned freight aircraft has a designed maximum take-off weight of 2,000kg (4,410lbs), a payload of 700kg (1,540lbs) and a full-weight range of 520km (323 miles). It can achieve a maximum cruise speed of 300km/h and a maximum operating altitude of 5,000 metres…With the capacity to carry around 4 cubic metres of cargo, the main application for the drone is branch-line logistics, or short-range delivery…“Besides, commercial drones are basically all assembled with lithium batteries. China’s lithium batteries are at the international forefront in performance and price. The cost advantage is favourable to the development of the industry,” AskCI said…The drone industry is an essential part of China’s low-altitude economy, referring to businesses operating aerial vehicles below 3,000 metres in altitude…AVIC said the successful maiden flight of the HH-100 prototype was in response to China’s push to build a strategic emerging industry in the low-altitude economy.

For the first time, the Tesla Model Y is the world's best-selling vehicle in 2023, according to data compiled by JATO Dynamics. A leader in automotive data, the research company looked at 151 automotive markets to determine the year's winners. It found that Tesla was able to beat out the Toyota RAV4 for the top spot, making history as the first EV to claim the title of best-selling vehicle in the world….According to JATO, 1,223,000 Model Ys were sold in 2023, which handily beats out the 1,075,000 RAV4s Toyota was able to sell.