EU imposes duties on unfairly subsidised electric vehicles from China while discussions on price undertakings continue

Today 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. As previously disclosed, the investigation found that the BEV value chain in China benefits from unfair subsidization which is causing threat of economic injury to EU producers of BEVs. As a result, the duties will enter into force on the day following publication in the Official Journal.

In parallel, the EU and China continue to work towards finding alternative, WTO-compatible solutions that would be effective in addressing the problems identified by the investigation. The Commission also remains open to negotiating price undertakings with individual exporters, as is permitted under EU and WTO rules.

Countervailing duties imposed for five years

As from the entry into force of the measures, sampled Chinese exporting producers will be subject to the following countervailing duties:

• BYD: 17.0%
• Geely: 18.8%
• SAIC: 35.3%

Other cooperating companies will be subject to a duty of 20.7%. Following a substantiated request for an individual examination, Tesla will be assigned a duty of 7.8%. All other non-cooperating companies will have a duty of 35.3%.

Definitive duties will be collected as of entry into force. The provisional duties imposed on imports of BEVs from China on 4 July 2024 will not be collected.

Ensuring the effectiveness and fairness of measures

Going forward, the Commission will monitor the effectiveness of the measures in force, including to ensure that they are not circumvented.

Any exporting producer who cooperated and is subject to the sample average duty, or who is a new exporter, is entitled to request an accelerated review to establish an individual duty rate.

The measures will expire at the end of the 5-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 their subsidy margin is less than the duties paid by the importers. Such a request should be duly substantiated and supported by the respective 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. This decision was based on growing evidence about the recent and rapid rise in low-priced exports of electric vehicles coming from China to the EU. The Commission followed strict legal procedures in line with EU and WTO rules, allowing all parties concerned, including the Chinese government and companies/exporters, to present comments, evidence and arguments.

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Quote(s)

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.

Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade