The European Commission has just pre-disclosed the level of provisional countervailing duties it would impose on imports of battery electric vehicles (BEVs) from China. These provisional countervailing duties would be introduced from 4 July 2024 by a guarantee should discussions with Chinese authorities not lead to an effective solution.

The form of guarantee would be decided by customs in each Member State, says the Commission in a press release yesterday (12 June).

The individual duties the Commission would apply to the three sampled Chinese producers would be 17.4% (BYD), 20% (Geely) and 38.1% (SAIC).

Other BEV producers in China, which cooperated in the Commission investigation but have not been sampled, would be subject to the weighted average duty of 21%. All other BEV producers in China which did not cooperate in the investigation would be subject to the residual duty of 38.1%.

European Commission’s investigation provisionally concludes that BEV value chain in China benefit from unfair subsidies. (Source: European Commission) 

The provisional countervailing duties is part of the results of the Commission ex-officio anti-subsidy investigation initiated on imports of BEVs for passengers originating in China, which has provisionally concluded that the BEV value chain in China benefits from unfair subsidization, causing a threat of economic injury to EU BEV producers.

The Commission also emphasizes that the investigation also examined the likely consequences and impact of measures on importers, users and consumers of BEVs in the EU. It has reached out to Chinese authorities to discuss these findings and explore possible ways to resolve the issues identified in a WTO-compatible manner.

Chinese Foreign Ministry: Protectionism has no future

At the regular press conference on yesterday, Chinese Foreign Ministry Spokesperson Lin Jian responded to the European Commission’s decision.

Chinese Foreign Ministry Spokesperson Lin Jian. (Source: Chinese Foreign Ministry)

“I would like to stress that the anti-subsidy probe is typical protectionism,” says the spokesperson. “To levy additional tariffs on EVs imported from China violates market economy principles and international trade rules, disrupts China-EU economic and trade cooperation and the global automotive industrial and supply chains and will eventually hurt Europe’s own interests.”

He also says protectionism has “no future” and open cooperation is the right way forward. “China will take all measures necessary to firmly defend our lawful rights and interests,” he adds.