EU to Levy Provisional Anti-subsidy Duty on Chinese Electric Cars Imported
TapTechNews on June 12th, the European Commission today issued a statement stating that it intends to levy a provisional anti-subsidy duty on electric cars imported from China starting from July 4th.
As part of the ongoing investigation, the European Commission has tentatively concluded that:
The pure electric vehicle (BEV) value chain in China benefits from unfair subsidies, posing a threat of economic damage to pure electric vehicle manufacturers in the European Union. The investigation also examines the possible consequences and impacts of these measures on EU importers, users and consumers of pure electric vehicles.
In this context, the European Commission has pre-announced the level of the provisional anti-subsidy duty to be levied on pure electric vehicles imported from China. If discussions with China fail to reach an effective solution, these provisional anti-subsidy duties will be collected through surety starting from July 4th (the specific form is determined by the customs of each member state).
The statement specifically mentions the tariff increase rates (currently the EU levies a 10% general import tax on all imported pure electric vehicles):
17.4% for BYD
20% for Geely
38.1% for SAIC
21% tariff for other electric vehicle manufacturers cooperating in the investigation
38.1% tariff for all other electric vehicle manufacturers not cooperating in the investigation
After the pre-disclosure of this statement, the sampled companies can now provide comments on the accuracy of the respective responsibilities calculated in the pre-disclosure. Then, at the latest by July 4, 2024, the European Commission will publish a regulation in the Official Journal detailing the provisional investigation results that led to the tariff levels.
The Commission will have 4 months to reach the final investigation results. The basic facts and analysis on which the final investigation results are based will be disclosed in writing to the interested parties (final disclosure). The final measure will be valid for 5 years.
TapTechNews noticed that after the release of this statement, Xinhua News Agency released a message:
The European side disregards the facts and the rules of the World Trade Organization, and insists on taking trade protectionist actions despite the calls and dissuasions of the governments and industries of multiple EU member states. This move not only damages the legitimate rights and interests of China's electric vehicle industry, but also disrupts and distorts the global automotive industry chain and supply chain including the European Union.
According to a report by Reuters, after the release of the EU statement, Oliver Zipse, chairman of the BMW Group, said: The decision of additional import tariffs is wrong. The European Commission has thereby damaged European companies and European interests. Protectionism could start to spiral: Tariffs lead to new tariffs, to isolation rather than cooperation. From the point of view of the BMW Group, protectionist measures such as levying import tariffs do not help to compete successfully in the international market. Free trade remains the guiding principle of the BMW Group.
Volkswagen said: In the long term, anti-subsidy duties are generally not suitable to enhance the competitiveness of the European automotive industry. The timing of the decision of the European Commission is not favorable for the currently weak demand for pure electric vehicles in Germany and Europe...The negative impact of this decision outweighs any potential benefits for the European, especially the German automotive industry.
Stellantis Group said: As a global company, Stellantis believes in free and fair competition in the global trade environment and does not support measures that lead to the division of the world...Stellantis is able to adapt and take advantage of any situation flexibly, and today's tariff announcement will not stop our overall strategy towards Lingpao Automobile in Europe, as we have already taken this potential development into account.
Ola Kaellenius, CEO of Mercedes-Benz, said: As an exporting country, we don't need to increase trade barriers. We should commit to eliminating trade barriers in the spirit of the World Trade Organization.