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European car industry can withstand cheap Chinese EVs, Bruno Le Maire says

French finance minister backs new subsidies that will take into account producers’ emissions

France’s new automotive subsidies are “paving the way” for Europe’s car industry to withstand the threat of an influx of cheaper Chinese electric vehicle imports, according to finance minister Bruno Le Maire.Under a package of measures outlined in May to support green industries, the French government will only pay subsidies for new electric vehicles based on the emissions of their producers. That will hit manufacturers from China, where the industry relies on electricity largely powered by coal.

Speaking in Beijing, where he met Chinese leaders to discuss trade and investment this weekend, Le Maire said he was “not concerned” about the threat to Europe’s carmakers from Chinese electric vehicle imports.

“I think with our new legislative decisions, we pave the way in Europe for a less naive approach, taking into account the level of emissions of the industry,” he said.

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