Commission imposes provisional countervailing duties on imports of battery electric vehicles from China while discussions with China continue

4 July 2024, nine months after the initiation of an ex officio anti-subsidy investigation, the European Commission imposed provisional countervailing duties on imports of battery electric vehicles (BEVs) from China. Based on the investigation, the Commission has concluded that the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers. The investigation has also examined the likely consequences and impact of these measures on importers, users, and consumers of BEVs in the EU.

Consultations with the Chinese government have intensified in recent weeks, following an exchange of views between Executive Vice-President Valdis Dombrovskis and Chinese Trade Minister Wang Wentao. Contacts continue at technical level with a view to reaching a WTO-compatible solution, which adequately addresses the concerns raised by the European Union. Any negotiated outcome to the investigation must be effective in addressing the injurious forms of subsidisation identified.

The individual duties applying to the three sampled Chinese producers are:

BYD: 17.4%;
Geely: 19.9%;
SAIC: 37.6%.

Other BEV producers in China, which cooperated in the investigation but were not sampled, are subject to the 20.8% weighted average duty. The duty for other non-cooperating companies is 37.6%.

Compared to the rates pre-disclosed on 12 June 2024, provisional duties were adjusted slightly downwards based on comments on the accuracy of the calculations submitted by interested parties. All the detailed findings of the investigation are reflected in the Implementing Regulation which is now published in the Official Journal.

These provisional duties will apply as of 5 July 2024, for a maximum duration of four months. Within that timeframe, a final decision must be taken on definitive duties, through a vote by EU Member States. When adopted, this decision would make the duties definitive for a period of five years.

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