Provisional EU figures suggest steep duties for Chinese car companies
The European Commission has said that Chinese automotive groups face the prospect of tariffs of up to 38.1% on imports into the European Union of battery electric vehicles. Its announcement came on June 12.
It said its provisional conclusion from an ongoing investigation into the matter was that the battery electric vehicle value chain in China was receiving “unfair subsidisation”. It added that this was “causing a threat of economic injury” to European automotive manufacturers.
It explained that it had reached out to the authorities in China to discuss its findings and to “explore possible ways to resolve the issues identified” in a manner compatible with World Trade Organisation rules.
Recent remarks from China’s commerce minister, Wang Wentao, inspire very little optimism that such a resolution can come about.
Provisional countervailing duties on imports of battery electric vehicles from Chinese automotive groups would be 17.4% for BYD, 20% for Geely and 38.1% for SAIC. Other manufacturers that the EU says co-operated with its investigation will face duties of “a weighted average” of 21%. Car companies that failed to co-operate with the investigation will have to pay 38.1%.
The Commission said Tesla may receive an individually calculated duty rate at the definitive stage. And it said any other company producing in China that wishes to have its particular situation investigated can ask for an accelerated review.
These duties will only become definitive if the Commission’s attempts to reach a resolution with the Chinese authorities fail.
Image: SAIC.
