The EU Trade Commissioner says the outcome of an investigation into electric cars in China cannot be judged in advance

BEIJING — Europe has launched an investigation into subsidies for Chinese electric vehicles, but no assumptions should be made about the outcome of the investigation, the head of trade in the European bloc’s executive branch said Tuesday.

About two weeks ago, the European Commission announced an investigation into government support for electric car manufacturers in China.

Valdis Dombrovskis, executive vice president and trade commissioner of the European Commission, told reporters on Tuesday that the investigation was focused on supporting electric vehicle production and would be “fact-based.” He was speaking in Beijing after a four-day trip in China.

He added that the investigation will be in line with European Union and World Trade Organization rules and will include dealing with Chinese authorities and companies.

He added: “The results of the investigation will be determined by them… [I] “We cannot prejudge the outcome of the investigation,” Dombrovskis said.

China’s exports of electric vehicles have soared in recent months. When looking at exports of all types of cars, China has already surpassed Germany’s exports, and is on track to overtake Japan this year as the world’s largest car exporter, according to Moody’s.

Homegrown Chinese electric vehicle companies Nio, Xpeng and BYD are among those that have begun expanding into Europe, but in relatively small numbers so far. More than two-thirds of China’s electric vehicle exports to Europe were from Tesla and other global brands manufactured in China, according to HSBC.

However, the future consequences for business are significant.

Dombrovskis pointed to the European Union’s plans to phase out sales of cars with internal combustion engines by 2035. He also said that the share of Chinese electric vehicle brands in the EU market has risen from less than 1% to 8% in the past two or three years.

He told reporters that another element in the EU subsidy investigation was the “risk of harm” to the European car industry.

European auto giants, such as Volkswagen, generate significant sales from China, but struggle to penetrate the highly competitive electric car market there. Earlier this year, VW and startup Xpeng announced a strategic partnership through which they will jointly develop cars for the Chinese market.

China’s Ministry of Commerce was quick to criticize the EU investigation, calling it a “blatant protectionist act” that would distort the global auto industry.

China’s NEV exports are growing due to the highly competitive domestic supply chain and market environment, Cui Dongshu, president of the China Passenger Vehicle Association, said in an online post.

On Tuesday, Dombrovskis told reporters that the EU’s investigation into electric vehicle subsidies had been raised in almost every meeting with his Chinese counterparts.

China’s electric vehicle ambitions began more than a decade ago. Wan Gang, a former Audi engineer, became China’s minister of science and technology in 2007 and persuaded the central government to put forward a national strategy for developing new energy vehicles and battery technology.

Between 2009 and 2015, the central government spent at least $1 33.4 billion yuan ($4.57 billion) in support of the development of electric cars, according to the Ministry of Finance. Beijing has tended to integrate EVs into the broader category of new energy vehicles.

The government-led campaign was not without waste. In 2016, the Finance Ministry said it found that at least five companies cheated the system 1 billion yuan.

The country’s most recent EV-related subsidies have focused on tax breaks for consumers. Electric cars are considered one of the bright spots in the slowdown in the Chinese economy, and a driver of advanced manufacturing, retail sales and exports.

— CNBC’s Clement Tan contributed to this report.