As part of its ongoing investigation, the European Commission has provisionally concluded that EV value chains in China benefit from unfair subsidisation, which is causing a threat of economic injury to EU battery electric vehicle (BEV) producers.
The investigation also examined the likely consequences and impact of Chinese EV value chains on importers, users and consumers of BEVs in the EU.
Based on the findings, the Commission has contacted Chinese authorities to explore possible ways to resolve the issues identified in a WTO-compatible manner.
How will unfair subsidies be addressed?
The Commission has pre-disclosed the level of provisional countervailing duties it would impose on imports of battery electric vehicles from China.
Should discussions with Chinese authorities not lead to an effective solution, these provisional countervailing duties would be introduced from 4 July by a guarantee (in the form to be decided by customs in each Member State).
The individual duties the Commission would apply to the three sampled Chinese producers would be:
- BYD: 17.4%
- Geely: 20%
- SAIC: 38.1%
Other BEV producers in China that 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 which did not cooperate in the investigation would be subject to a residual duty of 38.1%.
Next steps for balancing EV value chains
On 4 October 2023, the Commission formally initiated an ex-officio anti-subsidy investigation on imports of battery electric vehicles for passengers originating in China.
Any investigation will be concluded within a maximum of 13 months of initiation.
Following a substantiated request, one BEV producer in China – Tesla – may receive an individually calculated duty rate at the definitive stage.
Any other company producing in China not selected in the final sample that wishes to have its particular situation investigated can ask for an accelerated review, in line with the basic anti-subsidy regulation.
More information on these measures can be found here.
