The EC’s investigation into chinse state subsidies for its EV production has provisionally concluded that electric vehicle value chains do unfairly benefit.

As part of its ongoing investigation, it concluded that such subsidies are causing a threat of economic injury to EU BEV producers. The investigation also examined the likely consequences and impact of measures on importers, users and consumers of BEVs in the EU.

Consequently, the Commission has reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified in a WTO-compatible manner.

Should discussions not be fruitful, pre-disclosed the level of provisional countervailing duties it would impose on imports of battery electric vehicles (‘BEVs') from China have been outlined, and these provisional countervailing duties will be introduced from 4 July by a guarantee (in the form to be decided by customs in each Member State). They would be collected only if and when definitive duties are imposed.

The individual duties the Commission would apply to the three sampled Chinese producers would be: BYD: 17.4 per cent; Geely: 20 per cent; and SAIC: 38.1 per cent.

Other BEV producers in China, which cooperated in the investigation but have not been sampled, would be subject to the following weighted average duty: 21 per cent, and all other BEV producers in China which did not cooperate in the investigation would be subject to the following residual duty: 38.1 per cent.

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