China's commerce minister in Paris for EV talks

China's commerce minister Wang Wentao was due in Paris yesterday for talks that are expected to cover China's fast growing export of cheap electric vehicles into the European market.

The discussions would focus on a European Commission investigation into whether China's EV industry has benefited from unfair subsidies, sources said.

European carmakers have a fight on their hands to produce lower-cost electric vehicles and erase China's lead in developing cheaper models.

The European Commission, the bloc's executive arm which forecasts China's share of EVs sold in Europe could reach 15 percent of the market in 2025, said Chinese EVs benefit from huge state subsidies. It is examining whether to impose punitive tariffs.

China contests the claim its EV industry has boomed because of subsidies and has called the EU inquiry "protectionist." Analysts say factors, including China's dominance of the battery supply chain, innovation and cut-throat competition in a crowded domestic market have also reduced prices.

Wang will meet Renault chief executive Luca de Meo, who is also acting chairman of the European Automobile Manufacturers' Association, sources said.

He was also expected to meet executives from the cosmetics industry.