China has criticized the U.S. investigation into Chinese electric vehicles (EVs) ahead of planned trade talks in Paris. The U.S. probe, initiated by the Department of Commerce, aims to assess whether Chinese EVs are being sold at unfairly low prices, potentially harming domestic U.S. manufacturers. China's Foreign Ministry spokesperson accused the U.S. of using trade measures to suppress Chinese technological advancement and warned of retaliatory actions. The investigation could lead to tariffs on Chinese EVs, impacting global supply chains and trade relations. The development raises concerns about escalating trade tensions between the world's two largest economies, which could disrupt global markets. Investors are monitoring the potential impact on EV sector stocks, including Tesla and Chinese EV manufacturers like BYD. The outcome of the Paris talks will be critical in determining whether diplomatic efforts can mitigate the dispute or if further trade barriers will be imposed. For markets, the situation highlights the fragility of U.S.-China trade relations and their influence on multinational corporations. Traders should watch for updates on the investigation's findings, the response from Chinese authorities, and any shifts in trade policy that could affect commodity prices, technology stocks, and currency pairs like USD/CNY.

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