EC’s anti-subsidy investigation into imports of battery electric vehicles (BEV) from China

Summary:

Compilation of resources focusing on an anti-subsidy investigation carried out by the European Commission in 2023-2024 into imports of battery electric vehicles (BEVs) from China.

Further information:

The investigation was first announced at the annual State of the European Union (SOTEU) in September 2023. On 4 October 2023, the European Commission published a notice of initiation of an anti-subsidy proceeding concerning imports of new battery electric vehicles designed for the transport of persons originating in China. This investigation sought to determine whether BEV value chains in the country benefit from illegal subsidisation and whether this subsidisation causes or threatens to cause economic injury to BEV producers in the European Union (EU).

Provisional conclusions were unveiled on 12 June 2024, and on 4 July the Commission imposed provisional countervailing duties on BEV imports from China. The investigation found that the BEV value chain in China benefitted from unfair subsidisation, which was causing a threat of economic injury to EU BEV producers. On 20 August, the Commission disclosed the draft decision to impose definitive countervailing duties, reflecting the comments received from interested parties on the provisional duties as well as the conclusion of a number of investigative steps that had not been finalised at provisional stage. Member States endorsed the proposal on 4 October, which was formally adopted by the Commission on 29 October 2024.

• Commission Implementing Regulation (EU) 2024/2754 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China

Official

European Commission: DG Trade: Trade defence investigations: Case AS689 - New battery electric vehicles for passengers https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2684

European Commission: DG Trade: EU trade relations with China https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/china_en

EUR-LEX: OJ C Series, 04/10/2023: Notice of initiation of an anti-subsidy proceeding concerning imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China http://data.europa.eu/eli/C/2023/160/oj

European Commission: Press Release, 04/10/2023: Commission launches investigation on subsidised electric cars from China https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4752

European Commission: Press Release, 12/06/2024: Commission investigation provisionally concludes that electric vehicle value chains in China benefit from unfair subsidies https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3231

European Commission: Questions and Answers on the pre-disclosure of duties on imports of subsidised electric cars from China (12 June 2024) https://ec.europa.eu/commission/presscorner/detail/en/QANDA_24_3232

EUR-LEX: OJ L Series: Commission Implementing Regulation (EU) 2024/1866 of 3 July 2024 imposing a provisional countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China http://data.europa.eu/eli/reg_impl/2024/1866/oj

European Commission: Press Release, 04/07/2024: Commission imposes provisional countervailing duties on imports of battery electric vehicles from China while discussions with China continue https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3630

European Commission: Press Release, 20/08/2024: Commission discloses to interested parties draft definitive findings of anti-subsidy investigation into imports of battery electric vehicles from China https://ec.europa.eu/commission/presscorner/detail/en/ip_24_4301

European Commission: Questions and Answers on the disclosure to interested parties of draft definitive findings of anti-subsidy investigation into imports of battery electric vehicles from China (20 August 2024) https://ec.europa.eu/commission/presscorner/detail/en/QANDA_24_4302

European Commission: DG Trade: Readout of meeting between EVP Dombrovskis and Chinese Commerce Minister Wang (20 September 2024) https://policy.trade.ec.europa.eu/news/readout-meeting-between-evp-dombrovskis-and-chinese-commerce-minister-wang-2024-09-20_en

European Commission: Statement, 04/10/2024: Commission proposal to impose tariffs on imports of battery electric vehicles from China obtains necessary support from EU Member States https://ec.europa.eu/commission/presscorner/detail/en/statement_24_5041

EUR-LEX: OJ L Series: Commission Implementing Regulation (EU) 2024/2754 of 29 October 2024 imposing a definitive countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China http://data.europa.eu/eli/reg_impl/2024/2754/oj

European Commission: Press Release, 29/10/2024: EU imposes duties on unfairly subsidised electric vehicles from China while discussions on price undertakings continue https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5589

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News

EurActiv, 13/09/2023: Von der Leyen faces pushback for Chinese electric vehicle investigation https://www.euractiv.com/section/electric-cars/news/von-der-leyen-faces-pushback-for-chinese-electric-vehicle-investigation/

Reuters, 04/10/2023: China rebukes EU after formal launch of EV subsidy probe https://www.reuters.com/business/autos-transportation/china-rebukes-eus-rushed-request-consultations-over-ev-subsidy-probe-2023-10-04/

Bloomberg, 08/04/2024: China Says Innovation Built EV Success, Rejects EU Subsidy Probe https://www.bloomberg.com/news/articles/2024-04-08/china-says-innovation-built-ev-success-rejects-eu-subsidy-probe

Reuters, 03/05/2024: EU says information from three Chinese EV makers insufficient https://www.reuters.com/business/autos-transportation/eu-says-information-three-chinese-ev-makers-insufficient-2024-05-03/R

France24, 09/05/2024: China’s clean car manufacturers find a European foothold in Hungary https://www.france24.com/en/europe/20240509-china-clean-car-manufacturers-find-european-foothold-hungary-ev-orban-xi-jinping

EurActiv, 29/05/2024: German Minister Wissing: Tariffs on Chinese cars ‘wrong approach’ https://www.euractiv.com/section/transport/interview/german-minister-wissing-tariffs-on-chinese-cars-wrong-approach/

EurActiv, 12/06/2024: EU-China tensions flare up as Chinese government rebukes EU tariffs move https://www.euractiv.com/section/economy-jobs/news/eu-commission-announces-preliminary-tariffs-up-to-38-on-chinese-evs/

EurActiv, 12/06/2024: EU tariffs on Chinese EVs popular with industry, but China’s trade chamber warns against implications https://www.euractiv.com/section/economy-jobs/news/eu-tariffs-on-chinese-evs-popular-with-industry-but-chinas-trade-chamber-warns-against-implications/

Politico, 12/06/2024: EU shocks China with EV duties of up to 38 percent https://www.politico.eu/article/european-commission-china-ev-duties-up-38-1-percent-trade/

The Guardian, 12/06/2024: EU to put tariffs of up to 38% on Chinese electric vehicles as trade war looms https://www.theguardian.com/business/article/2024/jun/12/eu-import-tariffs-chinese-evs-electric-vehicles-trade-war

Euronews, 12/06/2024: EU to slap extra tariffs on Chinese electric cars in a bid to close competition gap https://www.euronews.com/my-europe/2024/06/12/eu-to-slap-extra-tariffs-on-chinese-electric-cars-in-a-bid-to-close-competition-gap

BBC News, 12/06/2024: EU threatens China EVs with tariffs of up to 38% https://www.bbc.co.uk/news/articles/cd11ze1k9r0o

Deutsche Welle, 12/06/2024: EU tariffs add to pressure on China's EV makers https://p.dw.com/p/4gfCx

EurActiv, 13/06/2024: China says it ‘reserves the right’ to file WTO suit over EU car tariffs https://www.euractiv.com/section/economy-jobs/news/china-says-reserves-the-right-to-file-wto-suit-over-eu-car-tariffs/

EurActiv, 14/06/2024: EU rebuffs Chinese businesses’ allegation of misconduct during anti-subsidy probe https://www.euractiv.com/section/economy-jobs/news/eu-rebuffs-chinese-businesses-allegation-of-misconduct-during-anti-subsidy-probe/

Associated Press (AP News), 20/06/2024: China protests over EU move to hike tariffs on Chinese electric vehicles https://apnews.com/article/china-europe-evs-tariffs-3f22bab4e6125beef757268a2331a432

Politico, 22/06/2024: China, EU agree to start consultations on electric-vehicle subsidies https://www.politico.eu/article/china-eu-launch-ev-investigation-talks/

Reuters, 22/06/2024: EU tariffs on China not a 'punishment', says German economy minister https://www.reuters.com/business/eu-tariffs-china-not-punishment-says-german-economy-minister-2024-06-22/

The Independent (UK), 24/06/2024: China, EU are open to talks on plans to hike tariffs on Chinese EVs https://www.independent.co.uk/news/chinese-ap-china-european-commission-beijing-b2567632.html

RFI News, 06/07/2024: Carmakers unhappy after EU hits China with tariffs on electric vehicles https://www.rfi.fr/en/international/20240706-carmakers-unhappy-after-eu-hits-china-with-tariffs-on-electric-vehicles

Swissinfo.ch, 21/08/2024: China opens anti-subsidy probe into EU dairy imports in pushback against EV tariffs https://www.swissinfo.ch/eng/china-opens-anti-subsidy-probe-into-eu-dairy-imports-in-pushback-against-ev-tariffs/87333307

Helsinki Times, 04/09/2024: Punitive tariffs threaten electric vehicle market in Europe https://www.helsinkitimes.fi/business/25587-punitive-tariffs-threaten-electric-vehicle-market-in-europe.html

France24, 11/09/2024: Spain PM urges EU to 'reconsider' China EV tariffs plan https://www.france24.com/en/live-news/20240911-spain-pm-urges-eu-to-reconsider-china-ev-tariffs-plan

RTÉ News, 13/09/2024: China 'disappointed' by Europe's rejection of EV proposal https://www.rte.ie/news/business/2024/0913/1469964-china-ev-europe/

RFI News, 20/09/2024: EU, China hold 'constructive' talks on electric vehicle tariffs but still no agreement https://www.rfi.fr/en/international/20240920-eu-china-hold-constructive-talks-on-ev-tariffs

Deutsche Welle, 24/09/2024: EU divided over higher tariffs for Chinese EV imports https://p.dw.com/p/4klKp

Politico, 25/09/2024: China and EU seek to avoid trade war with talks on minimum EV prices https://www.politico.eu/article/china-eu-forge-talks-explore-minimum-ev-prices-subsidies/

Politico, 30/09/2024: EU will hit China with electric vehicle duties, but peace talks to go on https://www.politico.eu/article/brussels-china-electric-vehicle-subsidies-duties-trade-commission-eu/

EurActiv, 30/09/2024: EU-China negotiations to continue after 4 October electric vehicle vote https://www.euractiv.com/section/economy-jobs/news/eu-china-negotiations-to-continue-after-4-october-electric-vehicle-vote/

France24, 30/09/2024: EU states plan Friday vote on Chinese EV tariffs https://www.france24.com/en/live-news/20240930-eu-states-plan-friday-vote-on-chinese-ev-tariffs

Le Monde, 02/10/2024: Macron and Scholz differ on tariffs on Chinese electronic vehicles https://www.lemonde.fr/en/europe/article/2024/10/02/macron-and-scholz-differ-on-tariffs-on-chinese-electronic-vehicles_6727999_143.html

Euronews, 03/10/2024: Von der Leyen's China policy faces moment of truth as EU countries vote on EV tariffs https://www.euronews.com/my-europe/2024/10/03/von-der-leyens-china-policy-faces-moment-of-truth-as-eu-countries-vote-on-ev-tariffs

BBC News, 04/10/2024: EU hits China with tariffs in electric car sales battle https://www.bbc.co.uk/news/articles/cly20n4d0g9o

Bloomberg, 04/10/2024: EU to Impose Tariffs Up to 45% on Chinese Electric Vehicles https://www.bloomberg.com/news/articles/2024-10-04/eu-votes-to-impose-tariffs-of-up-to-45-on-china-made-evs

Euronews, 04/10/2024: Brussels breaks impasse after EU countries fail to agree on Chinese EV tariffs https://www.euronews.com/my-europe/2024/10/04/brussels-breaks-impasse-after-eu-countries-fail-to-agree-on-chinese-ev-tariffs

Deutsche Welle, 04/10/2024: EU greenlights tariffs for Chinese electric vehicles https://p.dw.com/p/4lOAr

Reuters, 04/10/2024: How EU governments voted on Chinese EV tariffs https://www.reuters.com/business/autos-transportation/how-eu-governments-plan-vote-chinese-ev-tariffs-2024-10-04/

EurActiv, 04/10/2024: Member states fail to block Commission duties on Chinese EVs https://www.euractiv.com/section/economy-jobs/news/member-states-fail-to-block-commission-duties-on-chinese-evs/

Associated Press (AP News), 04/10/2024: EU tariffs on Chinese electric vehicles are part of an ‘economic cold war,’ Hungary’s Orbán says https://apnews.com/article/hungary-orban-eu-china-electric-vehicles-b255691c021fb901ceb2f1563e3a4346

TVP World, 04/10/2024: EU executive poised to adopt tariffs on Chinese electric vehicles after vote https://tvpworld.com/82661279/eu-executive-poised-to-adopt-tariffs-on-chinese-electric-vehicles-after-vote

Politico, 08/10/2024: China’s hit at EU brandy sparks fear of all-out trade war https://www.politico.eu/article/china-slaps-provisional-duties-on-eu-brandy-in-first-retaliation-strike/

BBC News, 08/10/2024: China hits back at EU with brandy tax https://www.bbc.co.uk/news/articles/cn8jz39xl19o

Deutsche Welle, 10/10/2024: EU to decide on higher tariffs for Chinese electric vehicles https://p.dw.com/p/4lOyf

Reuters, 28/10/2024: China again warns EU against separate talks with EV makers https://www.reuters.com/business/autos-transportation/china-again-warns-eu-against-separate-talks-with-ev-makers-2024-10-28/

Euronews, 29/10/2024: EU gives final green light to steep tariffs on Chinese electric cars https://www.euronews.com/my-europe/2024/10/29/eu-gives-final-green-light-to-steep-tariffs-on-chinese-electric-cars

EurActiv, 29/10/2024: EU-China electric car consultations in pipeline as tariffs loom https://www.euractiv.com/section/eet/news/eu-china-electric-car-consultations-in-pipeline-as-tariffs-loom/

France24, 29/10/2024: EU slaps new tariffs of up to 35.3 percent on Chinese electric vehicles https://www.france24.com/en/live-news/20241029-eu-adopts-extra-tariffs-of-up-to-35-3-on-chinese-evs

TVP World, 29/10/2024: EU increases tariffs on Chinese electric vehicles https://tvpworld.com/83217252/eu-increases-tariffs-on-chinese-electric-vehicles

EurActiv, 29/10/2024: EU adopts extra tariffs of up to 35.3% on China-made electric cars https://www.euractiv.com/section/economy-jobs/news/eu-adopts-extra-tariffs-of-up-to-35-3-on-china-made-electric-cars/

Associated Press (AP News), 30/10/2024: The EU is imposing duties on electric vehicles from China after trade talks fail https://apnews.com/article/eu-china-trade-electric-vehicles-duties-ev-9c720558b83316fdb6e1a0f9c2b55a15

Reuters, 30/10/2024: EU slaps tariffs on Chinese EVs, risking Beijing backlash https://www.reuters.com/business/autos-transportation/eu-slaps-tariffs-chinese-evs-risking-beijing-payback-2024-10-29/

Le Monde, 30/10/2024: EU slaps extra tariffs of up to 35.3% on Chinese EVs https://www.lemonde.fr/en/european-union/article/2024/10/30/eu-slaps-extra-tariffs-of-up-to-35-3-on-chinese-evs_6730948_156.html

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Commentary and Analysis

EurActiv, 13/09/2023: How will the EU’s investigation into Chinese electric vehicle subsidies work? https://www.euractiv.com/section/economy-jobs/news/how-will-the-eus-investigation-into-chinese-electric-vehicle-subsidies-work/

Deloitte: Tax Newsflash, 06/10/2023: EU begins anti-subsidy investigation on China's new battery electric vehicles https://www2.deloitte.com/cn/en/pages/tax/articles/eu-anti-subsidy-investigation-on-chinas-new-battery-electric-vehicles.html

DLA Piper: Insights, 06/10/2023: EU Commission published the notice of initiation of an anti-subsidy proceeding against imports of new battery electric vehicles from China https://www.dlapiper.com/en-gb/insights/publications/2023/10/notice-of-initiation-of-an-anti-subsidy-investigation-against-chinas-battery-electric-vehicles

European Parliamentary Research Service (EPRS): At a Glance, 18/10/2023: EU anti-subsidy probe into electric vehicle imports from China https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)754553

United States: Library of Congress: Global Legal Monitor, 02/11/2023: European Union: Commission Launches Anti-subsidy Investigation into Imports of Battery Electric Vehicles from China https://www.loc.gov/item/global-legal-monitor/2023-11-01/european-union-commission-launches-anti-subsidy-investigation-into-imports-of-battery-electric-vehicles-from-china/

Transport & Environment (T&E): Briefing, 27/03/2024: How Europe can use tariffs as part of an industrial strategy https://www.transportenvironment.org/articles/how-europe-can-use-tariffs-as-part-of-an-industrial-strategy/

Bocconi University: Institute for European Policymaking (IEP): Policy Brief, April 2024: The BEV anti-Subsidy Investigation of the Commission: Industrial Policy and Geopolitics in Disguise? https://iep.unibocconi.eu/policy-brief-bev-anti-subsidy-investigation-commission-industrial-policy-and-geopolitics-disguise

Bruegel: Analysis 16/05/2024: Rippling out: Biden’s tariffs on Chinese electric vehicles and their impact on Europe https://www.bruegel.org/analysis/rippling-out-bidens-tariffs-chinese-electric-vehicles-and-their-impact-europe

Peterson Institute for International Economics (PIIE): Realtime Economics Blog, 23/05/2024: Europe is taking a constructive approach to the influx of Chinese electric vehicles https://www.piie.com/blogs/realtime-economics/2024/europe-taking-constructive-approach-influx-chinese-electric-vehicles

EurActiv, 04/06/2024: How EU-China trade negotiations could play out https://www.euractiv.com/section/economy-jobs/news/how-eu-china-trade-negotiations-could-play-out/

HKTDC Research: Regulatory Alert, 04/06/2024: Provisional Findings in Controversial Electric Vehicle Anti-subsidy Investigation Imminent https://research.hktdc.com/en/article/MTcxMTc5NTE0Mg

Forbes Magazine, 06/06/2024: EU Decision On China EV Import Tariffs Poses Harsh Questions https://www.forbes.com/sites/neilwinton/2024/06/06/eu-decision-on-china-ev-import-tariffs-poses-harsh-questions/

S&P Global: Commodity Insights, 12/06/2024: European Commission to increase duties on Chinese EVs to up to 48.1% https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/metals/061224-european-commission-to-increase-duties-on-chinese-evs-to-up-to-381

European Automobile Manufacturers’ Association (ACEA): Press Release, 12/06/2024: China anti-subsidy investigation: provisional duties https://www.acea.auto/press-release/china-anti-subsidy-investigation-provisional-duties/

The Guardian: Explainer, 12/06/2024: How will new EU tariffs on Chinese electric vehicles work? https://www.theguardian.com/business/article/2024/jun/12/how-will-new-eu-tariffs-on-chinese-electric-vehicles-work

Euronews, 13/06/2024: What Brussels found when it probed Chinese subsidies and electric cars https://www.euronews.com/my-europe/2024/06/13/what-brussels-found-when-it-probed-chinese-subsidies-and-electric-cars

Politico, 18/06/2024: Europe gives China a taste of its own trade medicine https://www.politico.eu/article/europe-give-china-taste-its-own-medicine-ev/

ING Think: Article, 19/06/2024: What EU tariffs on Chinese electric vehicles could mean for the energy transition https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/

Hertie School: Jacques Delors Centre: Policy Brief, 01/07/2024: Boxing Smartly by the Rules – What the EU can learn from its EV Anti-Subsidy Investigation against China https://www.delorscentre.eu/en/publications/detail/publication/boxing-smartly-by-the-rules

ING Think, 06/09/2024: European carmakers are struggling amid historic EV shift https://think.ing.com/articles/european-car-makers-struggle-volvo-ev-electric-vehicles-demand/

EUObserver: Opinion, 11/09/2024: Why Chinese electric vehicle plants in EU could be a good thing https://euobserver.com/eu-and-the-world/arc88d71a8

Center for European Policy Analysis (CEPA): Insights & Anslysis, 18/09/2024: US and Europe Drive Different Roads to Confront Chinese Electric Vehicles https://cepa.org/article/us-and-europe-drive-different-roads-to-confront-chinese-electric-vehicles/

German Institute for International and Security Affairs (SWP): Point of View, 24/09/2024: China’s push towards Europe: BYD’s investment in Turkey https://www.swp-berlin.org/en/publication/chinas-push-towards-europe-byds-investment-in-turkey

EUObserver: Analysis, 27/09/2024: What's at stake in the EU-China electric vehicles battle? https://euobserver.com/eu-and-the-world/ar605941a4

Reuters: Explainers, 03/10/2024: What happens next as China-made EVs investigated by EU? https://www.reuters.com/business/autos-transportation/what-happens-next-china-made-evs-investigated-by-eu-2024-10-03/

Le Monde: Editorial, 08/10/2024: EU: Taxing Chinese electric vehicles, then what? https://www.lemonde.fr/en/opinion/article/2024/10/08/eu-taxing-chinese-electric-vehicles-then-what_6728614_23.html

Bruegel: First Glance, 08/10/2024: The European Commission’s duties on Chinese electric vehicles are a mistake https://www.bruegel.org/first-glance/european-commissions-duties-chinese-electric-vehicles-are-mistake

Bruegel: First Glance, 09/10/2024: European Union duties on electric vehicles point to new era of EU-China relations https://www.bruegel.org/first-glance/european-union-duties-electric-vehicles-point-new-era-eu-china-relations

European Council on Foreign Relations (ECFR): Commentary, 09/10/2024: Divided we stand: The EU votes on Chinese electric vehicle tariffs https://ecfr.eu/article/divided-we-stand-the-eu-votes-on-chinese-electric-vehicle-tariffs/

Bruegel: First Glance, 10/10/2024: EU duties on Chinese electric cars are a rule-respecting response to subsidies https://www.bruegel.org/first-glance/eu-duties-chinese-electric-cars-are-rule-respecting-response-subsidies

UK in a Changing Europe: Analysis, 11/10/2024: Shifting gear? The EU’s tariffs on Chinese battery electric vehicles https://ukandeu.ac.uk/shifting-gear-the-eus-tariffs-on-chinese-battery-electric-vehicles/

France24: Talking Europe, 18/10/2024: China hits back at EU over electric car tariffs: How bad could the trade dispute get? https://www.france24.com/en/tv-shows/talking-europe/20241018-china-hits-back-at-eu-over-electric-car-tariffs-how-bad-could-the-trade-dispute-get

The Guardian: Analysis, 20/10/2024: Is China cannibalising the EU car industry? https://www.theguardian.com/business/2024/oct/20/is-china-cannibalising-the-eu-car-industry

Politico, 29/10/2024: EU-China staring match on EV duties will continue — even after they take effect https://www.politico.eu/article/eu-china-ev-duties-experts-price-guarantee-european-commission-legal-byd/

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