China has quickly hit back at the European Union’s plans to launch an investigation into electric vehicle subsidies, with a leading Communist Party newspaper saying European consumers will suffer and signaling retaliatory steps may be taken.

European Commission President Ursula von der Leyen on Wednesday said that the global market is overrun with cheap Chinese cars kept “artificially low by huge state subsidies” and that the bloc will fight back.

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China Paper Warns Europe of Retaliation After EV Subsidies Probe