The European Commission has announced the provisional results of the investigation opened in 2023 on electric cars imported from China, and the conclusion is that these companies benefit from subsidies that affect EU electric car manufacturers.
From July, electric cars from China will be taxed at rates between 17% and 38%, but we are talking about provisional duties that could turn into definitive duties towards the end of the year.
The Commission has announced what tariffs it wants to impose on Chinese electric cars: 17.4% for BYD, 20% for Geely and 38.1% for SAIC. Other companies that have cooperated with EU authorities will pay 21% tariffs, and those that have refused cooperation, 38.1%.
The amount of duties will also differ according to the level of government subsidies received.
The investigation concluded that these Chinese companies bringing more and more electric cars to Europe have benefited from subsidies in their home countries that give them an illegal competitive advantage in Europe, because they could produce at much lower costs that would not have been possible without the subsidies.
These subsidies in China pose a danger to companies producing full-electric cars in the EU, say the commission.
China has blamed the EU for the subsidy investigation, urged cooperation and lobbied several countries.
Currently, vehicles produced in China face 10% tariffs.
These new tariffs are due to be imposed from 4 July, but there is much opposition at EU level, as many countries want to increase trade with China and attract big Chinese car companies to open plants for cars, batteries or various car components.
These tariffs are provisional, should apply from 4 July, and the investigation into Chinese subsidies should be finalised on 2 November. From then on, the duties should come into force and will be in force for the next five years.
These provisional duties have been communicated to the various companies concerned and to the Chinese authorities to “study ways to address the problems identified”, the Commission explained in a press release. “If discussions with the Chinese authorities do not result in an effective solution, these provisional countervailing duties will be introduced as from 4 July,” but “will only be collected, if definitive duties are imposed,” the Commission notice added.
Brussels will have four months after the imposition of provisional duties to impose definitive duties, but there is strong opposition among EU countries.
