China's NEV subsidies were/are illegal and Chinese EVs are countervailed in many developed countries (eg, the EU, Turkiye, Canada, US) because they are misapplied in three key ways.
i. forced tech transfer: no subsidies or market access unless hybrid/BEV/batteries tech transfer to China since 2011; violates China's 2001 Accession Protocal (see Section 7, Non-Tariff Measures); litigated before the WTO by the EU (WT/DS549)
ii, local content requirement: no subsidies or license/permit to operate in China unless automakers' EVs used Chinese batteries made by Chinese local "champions" only, namely CATL, since 2015; all foreign battery producers effectively banned and all EV producers forced to switch to local battery suppliers; violates Article 3(a) Prohibition of the Subsidies and Countervailing Measures (SCM) Agreement
iii, export subsidies: subsidies given to MIC exporters to under price/under cut foreign competitors in markets abroad; EU Commission's counter measures: 2024/1866 and 2024/2754.
Tesla China benefited significantly from China's NEV subsidies and is likewise also countervailed in the EU, at the import tariff rate of 7+%. Tesla no longer imports EV from China in the US/Canada.