The European Commission (EC) has disclosed draft definitive findings in its ongoing anti-subsidy investigation into Chinese imports of battery electric vehicles (BEVs). The draft decision revealed to interested parties on August 20th, 2024, proposes definitive countervailing duties ranging from 9% to 36.3% on Chinese BEV imports.
The disclosure follows comments received from stakeholders on provisional duties imposed in July and the conclusion of further investigative steps. The proposed duty rates are as follows:
- BYD: 17.0%
- Geely: 19.3%
- SAIC: 36.3%
- Other cooperating companies: 21.3%
- All other non-cooperating companies: 36.3%
Notably, Tesla has been granted an individual duty rate of 9% as an exporter from China. Additionally, certain Chinese exporters and joint ventures with EU producers may benefit from lower duty rates, and countervailing duties will not be collected retroactively.
The disclosure is an intermediate procedural step, allowing interested parties ten days to comment and request hearings. After considering these comments, the EC will present its final determination to EU Member States for a binding vote under comitology rules. Definitive measures must be imposed by October 30th, 2024, and any potential measures will be in force for five years, extendable upon review.
The investigation, initiated in October 2023 and announced by EC President Ursula von der Leyen during her State of the European Union speech, was prompted by concerns over the rapid rise in low-priced Chinese electric vehicle exports to the EU. The Commission has followed strict legal procedures in line with EU and WTO rules, allowing all concerned parties to present comments, evidence, and arguments.
The final decision will be published in the Official Journal of the European Union and will have significant implications for the European electric vehicle market and trade relations with China.
