On July 4, local time, the European Commission issued a notice saying that it had decided to impose temporary countervailing duties on imports of electric vehicles (BEVs) from China after a nine-month countervailing investigation into BEVs.
The temporary tariffs apply to some Chinese automakers, including a 37.6% increase on SAIC, 19.9% on Geely, and 17.4% on BYD; an average of 20.8% for other automakers that cooperated with the EU investigation, and 37.6% for those that did not. Compared with the data disclosed by the EU on June 12, the tariff rate determined this time has been slightly reduced.
The temporary tariffs will come into effect on July 5, 2024, and will last for a maximum of four months, during which time EU member states will vote on whether to convert them into full five-year tariffs. Currently, the EU and Chinese governments are still seeking a solution in line with WTO rules through technical level discussions.
At the regular press conference held by the Ministry of Commerce on July 4, He Yadong, deputy director of the General Office of the Ministry of Commerce and spokesman, said in response to media questions that China has repeatedly expressed strong opposition to the EU’s countervailing subsidy investigations on China’s electric cars and advocated that economic and trade frictions be properly dealt with through dialogue and consultation.On June 22, Minister Wang Wentao held a video meeting with Dombrovskyis, the EC’s executive vice-president and trade commissioner. The two sides agreed to immediately launch consultations on the proper handling of the case based on the two pillars of facts and rules. So far, China and the EU have held several rounds of consultations at the technical level.
He Yadong pointed out that there is still a four-month window before the final ruling. It is hoped that the European side and the Chinese side will work together, show sincerity, push forward the consultation process, and reach a mutually acceptable solution as soon as possible based on facts and rules.
Regarding the EU’s decision to impose high temporary countervailing duties, the European Union-China Chamber of Commerce (EUCCC) issued a statement on July 4, saying that it firmly opposes this politically-driven trade protectionist move by the European side. The imposition of high tariffs will have a serious impact on the trade between China and Europe in the field of electric vehicles, which will significantly increase the cost of electric vehicle enterprises, make it more difficult for them to expand their business, undermine the confidence of Chinese automobile enterprises in the development of the European Union, and also negatively affect the EU in shaping a favorable environment for the development of the green economy.