EU Launches Anti-Subsidy Probe on Chinese Electric Vehicles
The European Commission, led by Ursula von der Leyen, has launched an anti-subsidy inquiry targeting Chinese electric vehicles (EVs). The investigation aims to examine whether state subsidies are artificially lowering prices and distorting the European market.
The EU's probe will focus on individual companies rather than countries, with a preliminary decision expected within nine months and a final ruling within 13 months. Chinese companies are advised to actively participate and seek professional help, considering local partners' influence during the inquiry.
The investigation can retroactively apply to subsidies received within the past five years, dating back to 2018. Chinese brands most likely to be affected include SAIC Motor's MG, BYD, and Geely, with countervailing duties ranging from 17.4% to 38.1% set to be imposed from July 2024. Despite this, the probe's short-term impact on Chinese car companies' sales in Europe is not expected to be significant.
Tesla's Model 3 exports to Europe will primarily come from the US once its production capacity increases. The European Chamber of Commerce in China opposes the inquiry, arguing that Chinese EVs' advantages were not created through subsidies.
The EU's anti-subsidy investigation into Chinese electric vehicles is underway, with a focus on individual companies and a potential retroactive application of five years. Chinese automakers must actively participate and seek professional advice to navigate the inquiry. While the probe may lead to countervailing duties, its short-term impact on sales is not expected to be substantial.
