The European Commission has provisionally ruled that China’s BEV value chain benefits from unfair subsidies and therefore threatens European BEV producers.
The finding comes as part of its ongoing anti-subsidy investigation into imports of battery electric vehicles for passengers originating in China, which began in October 2023.
As a result, the commission says it is reaching out to Chinese authorities to discuss these findings and “explore possible ways to resolve the issues identified in a World Trade Organization-compatible manner.”
Should discussions with Chinese authorities not lead to an effective solution, the commission will begin to impose provisional countervailing duties on BEV imports of BEVs from China. It has set individual duties for three Chinese producers that were sampled during the investigation: 17.4% for BYD, 20% for Geely and 38.1% for SAIC.
The commission says other BEV producers in China, which cooperated in the investigation but have not been sampled, would be subject to a weighted average duty of 21%. All other BEV producers in China that did not cooperate in the investigation would be subject to a following residual duty of 38.1%. The commission added that Tesla may receive an individually calculated duty rate following a specific request it had made.
The European Commission’s investigation is expected to take no longer than 13 months in total. Provisional countervailing duties may be published by the commission within nine months after initiation, so by July 4 at the latest, while any definitive measures are to be imposed within four months after provisional duties are imposed.
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