The European Commission announced on October 29 that it has concluded its anti-subsidy investigation into imports of Battery electric vehicles (BEVs) from China. It decided to impose additional EV tariffs but stated that discussions on price undertakings will continue.
The countervailing duties will be imposed for five years and will come into effect the day after their publication in the Official Journal. “Meanwhile, the EU and China continue to work on alternative, WTO-compliant solutions to effectively address the issues identified by the investigation,” the statement said.
Definitive duties will be collected upon entry into force. The provisional duties imposed on imports of BEVs from China on July 4, 2024, will not be collected. Hours after the statement was released, the definitive duty rates were published, meaning the additional tariffs will be effective from October 30.
The European Commission formally launched an anti-subsidy investigation into imports of electric vehicles (EVs) from China on October 4, 2023, claiming they benefit from unfair Chinese subsidies and distort the European market.
On October 4 of this year, EU member states voted to impose additional tariffs on BEVs imported from China. These tariffs are in addition to the original 10%, with different EV makers facing varying rates.
Of the companies sampled, Tesla received the lowest rate at 7.8%. BYD was set at 17.0%, Geely at 18.8%, and SAIC Motor at the highest rate of 35.3%. EV makers that cooperated with the investigation but weren’t sampled face an additional tariff of 20.7%, while non-cooperating companies have a tariff of 35.3%. Nio, Xpeng, and Leapmotor are among the EV makers that cooperated with the investigation but were not sampled; they face an additional tariff of 20.7%.
Tariffs faced by automakers in EU on top of original 10%
| Company | Additional Tariff | Note |
|---|---|---|
| Tesla Shanghai | 7.8% | Listed separately |
| BYD | 17.0% | Listed separately |
| Geely | 18.8% | Listed separately |
| SAIC Motor | 35.3% | Listed separately |
| Aiways | 20.7% | Cooperating, not sampled |
| JAC | 20.7% | Cooperating, not sampled |
| BMW Brilliance | 20.7% | Cooperating, not sampled |
| Chery | 20.7% | Cooperating, not sampled |
| China FAW | 20.7% | Cooperating, not sampled |
| Changan Automobile | 20.7% | Cooperating, not sampled |
| Dongfeng Motor | 20.7% | Cooperating, not sampled |
| Great Wall Motor | 20.7% | Cooperating, not sampled |
| Leapmotor | 20.7% | Cooperating, not sampled |
| Golden Dragon Bus | 20.7% | Cooperating, not sampled |
| Nio | 20.7% | Cooperating, not sampled |
| All other companies | 35.3% |
Despite the EU’s decision to impose countervailing duties on Chinese EVs, both sides are still exploring alternative solutions.
Following the disclosure of the European Commission’s final ruling on the countervailing investigation on August 20, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), with authorization from 12 EV makers, submitted a price commitment proposal on August 24 to the European Commission, according to a previous statement by CCCME.
On October 16, CCCME said that in the more than 20 days since September 20, Chinese and European technical teams held eight rounds of consultations in Brussels but failed to reach a mutually acceptable solution.
On October 25, the European Commission stated that it and the Chinese side have agreed to hold further technical talks soon on possible alternatives to tariffs on Chinese-made EVs. In the statement yesterday, the European Commission reiterated it is willing to negotiate price undertakings with individual exporters, as allowed under EU and WTO rules.
However, China disputed this, and the CCCME on October 16 accused the European Commission of making a move that would shake the foundations of the negotiations and mutual trust, causing disruption to the consultations between the two sides.
Today, China’s Ministry of Commerce said that technical teams from both sides are conducting a new phase of consultations to reach a mutually acceptable solution as soon as possible to avoid an escalation of trade friction.
Source: CnEVPost
