The European Commission has announced the first preliminary decision on the amount of duties in its anti-subsidy investigation into battery electric vehicles (BEVs) made in China, broken down by brand:
- BYD: 17.4%
- Geely: 20%
- SAIC: 38.1%
- Other BEV manufacturers in the PRC who co-operated in the investigation: 21%
- Other BEV manufacturers in China that did not co-operate: 38.1%
In this way, the commission seeks to eliminate what it considers to be substantial government assistance provided to Chinese manufacturers. The aid includes grants, cheap loans, tax rebates and other incentives that the Chinese authorities provide to their automobile manufacturers.
According to Eurostat data, sales of Chinese-origin BEVs in the EU have increased from 57,000 units in 2020 to 437,000 units in 2023. Market share data from Transport and Environment shows a jump from 0.4 per cent in 2019 to 7.9% in 2023, with forecasts exceeding 20% by 2027.
The unfair competition investigation began last October with a focus on multilateral state aid to companies such as BYD, which are clearly aiming to capture up to 5% of the BEV market in the EU, putting them under scrutiny.
The preliminary decision announced on Wednesday shows that the European Commission believes the threat is real and drastic measures are needed to prevent the worst from happening.
The measures will be imposed in early July unless Beijing offers convincing solutions to correct its unfair trade practices.
In response to the EU's action, China has expressed strong disapproval. A Chinese government spokesperson said that they "will not sit back and watch the imposition of tariffs." They particularly named potential targets for retaliatory measures, which could include sectors such as the EU's agricultural and aviation industries.
Source: Euronews
