Strasbourg, 13 September 2023 (dpa/MIA) – European Commission President Ursula von der Leyen announced on Wednesday an anti-subsidy investigation into electric vehicles imported from China and called for support for Ukrainian refugees in her annual address to the European Parliament.

Global markets are flooded with cheap Chinese electric cars, von der Leyen said in her State of the Union speech in Strasbourg, France, the parliament's seat.

Their price is kept artificially low by "huge state subsidies," she said. This leads to market distortions in the EU.

However the EU does not tolerate market distortions either from within the bloc or from outside of it, von der Leyen said.

"Europe is open to competition, not for a race to the bottom," she said.

An anti-subsidy investigation can potentially lead to punitive duties being imposed on imports to the EU.

In the global race for profitable clean tech industries, von der Leyen previously called for greater independence from Chinese imports and the production of more emissions-reducing technology in the bloc.

On Wednesday she reiterated that the EU needs to improve its economic security. At the same time it was "vital to keep open lines of communication and dialogue with China," she said.

At a planned EU-China summit later this year, von der Leyen is to advocate for reducing trade and economic risks in the EU's relations with China while maintaining dialogue with the country, she said.

Von der Leyen called again on EU member states to also reduce their dependences on Chinese imports of raw materials needed to transition to a low-carbon economy and to diversify suppliers.

She also reaffirmed her ambitions to fight climate change and to make the bloc carbon-neutral by 2050 and announced increased engagement with industry representatives to work towards a successful implementation of EU climate laws.

The commission president also stressed the bloc's support for war-torn Ukraine in her speech.

Refugees from Ukraine will be allowed to continue to stay in the EU without having to apply for asylum, she said.

Ukrainians fleeing the war are exempt from lengthy asylum procedures usually required by EU member countries. Instead they are immediately entitled to social benefits, a work permit and access to education and housing.

The current exemptions are to expire in March 2024. Von der Leyen said she will ask EU capitals to extend the measures.

Four million Ukrainians have found refuge in the bloc since Moscow launched its invasion, von der Leyen said on Wednesday in her address to EU lawmakers.

Since Russia launched its full-scale invasion of Ukraine in February 2022, von der Leyen has pushed for far-reaching aid and sanction packages, as well as for opening Kiev's path to EU membership.

Von der Leyen's address to the European Parliament was the last one of her tenure as her five-year mandate ends next summer when the European elections take place.

EU lawmakers, eager to hear whether she will run for a second term, were disappointed by her speech as she did not say whether she intends to stand for re-election.

Her continued silence on her career plans is likely to fuel speculation about where the former German defence minister sees her future, as the post of NATO secretary general is also due to become vacant next summer.

Von der Leyen was accompanied in Strasbourg by Colombian writer Héctor Abad Faciolince, a vocal supporter of Ukraine.