European Commission President Ursula von der Leyen announced Wednesday that the EC would be opening an investigation into China’s subsidies for electric vehicles in her State of the European Union address today.

“Europe is open for competition but not a race to the bottom,” she said in her annual State of the Union speech.

The EC chief said that the EU would however maintain an “open dialogue” with China’s leadership and again reiterated the strategy of de-risking not decoupling from China would not be unchanged. “This will be my approach with the Chinese leadership at the EU-CH summit later this year,” she said.