Brussels, — On the 29th of October, the European Commission concluded its anti-subsidy investigation by imposing definitive countervailing duties on imports of battery electric vehicles (BEVs) from China for a period of five years. The investigation found that the BEV value chain in China benefits from unfair subsidisation, posing a threat of economic injury to EU producers.
Duties to Commence Following Official Journal Publication
The duties will enter into force the day following their publication in the Official Journal. Key Chinese exporting producers will face the following countervailing duties:
- BYD: 17.0%
- Geely: 18.8%
- SAIC: 35.3%
- Other cooperating companies: 20.7%
- Tesla (following a substantiated request for an individual examination): 7.8%
- All other non-cooperating companies: 35.3%
Definitive duties will be collected from the date of entry into force, and the provisional duties imposed on 4 July 2024 will not be collected.
Executive Vice-President Dombrovskis’ Statement
Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, stated, “The EU remains the global champion for open, fair and rules-based trade. We welcome competition, including in the electric vehicle sector, but it must be underpinned by fairness and a level playing field. By adopting these proportionate and targeted measures after a rigorous investigation, we’re standing up for fair market practices and for the European industrial base. In parallel, we remain open to a possible alternative solution that would be effective in addressing the problems identified and WTO-compatible.”
Ongoing Discussions and Alternative Solutions
In parallel with the imposition of duties, the EU and China continue to engage in discussions aimed at finding alternative, WTO-compatible solutions to address the identified issues. The Commission remains open to negotiating price undertakings with individual exporters, in accordance with EU and WTO rules.
Monitoring and Review Processes
The Commission will monitor the effectiveness of the measures to ensure they are not circumvented. Exporting producers subject to the sample average duty, or new exporters, may request an accelerated review to establish an individual duty rate. The measures will expire at the end of the five-year period unless an expiry review is initiated before that date.
Importers may request a refund if they believe their exporting producer is not subsidised or if the subsidy margin is less than the duties paid. Such requests must be duly substantiated and supported by evidence.
Background
The investigation was announced by Ursula von der Leyen, President of the European Commission, on 13 September 2023 during her State of the European Union (SOTEU) speech. The decision was prompted by growing evidence of a rapid rise in low-priced exports of electric vehicles from China to the EU. Throughout the investigation, the Commission adhered to strict legal procedures in line with EU and WTO rules, allowing all concerned parties, including the Chinese government and exporters, to present comments, evidence, and arguments.
The imposition of these duties marks a significant step in the EU’s efforts to safeguard its domestic BEV industry against unfair competition while continuing to engage in constructive dialogue with China.
