The European Commission on Wednesday formally began an anti-subsidy investigation into Chinese electric vehicles, first announced by Commission president Ursula von der Leyen last month.

In a notice of initiation, the Commission said it will initially investigate whether the battery electric vehicles (BEV) made in China benefit from “illegal subsidisation,” harming European BEV producers. If it is found true, it will further examine the impact on BEV importers, users, and consumers in the EU. Based on the findings, the Commission will make a decision on imposing anti-subsidy duties on BEVs imported from China. 

“The electric vehicle sector holds huge potential for Europe’s future competitiveness and green industrial leadership,” says von der Leyen. “EU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively.”

The investigation will fully respect EU and international obligations as Europe “plays by the rules, within its borders and globally,” the Commission president adds. “This anti-subsidy investigation will be thorough, fair, and fact-based.”

The probe is the Commission’s own initiative (an ex officio investigation), rather than being the result of a formal complaint from the EU industry. As stipulated by law, the Commission held pre-initiation consultations with the Chinese government before publishing the notice of initiation. It aims to conclude the probe within 13 months.

China, meanwhile, expressed “deep concern” and “strong dissatisfaction” over the EU anti-subsidy probe. On Wednesday, the nation’s commerce ministry said it was given “very short” consultation time. It was also not given adequate consultation materials, the ministry said, according to Reuters.