There’s a growing chance that Chinese battery-electric vehicles imported to Europe could be hit with tariffs after the European Commission announced it will start customs registration of eligible vehicles.
The European Commission is currently carrying out an anti-subsidy investigation into Chinese EVs and plans to conclude the probe in November when it will determine whether to impose tariffs to protect local car manufacturers.
Earlier this week, the Commission stated that it will start customs registration of Chinese BEV imports the day after the plan is published in the European Union Journal, which should happen within the coming week. The Commission says it has sufficient evidence to show that Chinese EVs are being subsidized and noted that imports have increased 14% year-on-year since the investigation was launched in October. It added that EU-based carmakers could suffer harm if Chinese imports continue to grow at current rates, noting this harm could be difficult to repair.
The China Chamber of Commerce to the EU isn’t happy with the news, Auto News reports. It says it is disappointed with the move and believes the rise in imports simply reflects growing European demand for electric vehicles.
The investigation aims to see if made-in-China EVs get state subsidies that add an unfair advantage in setting retail prices in Europe compared to European brands that do not receive state subsidies. Car companies including BYD, Geely, and SAIC are all under the spotlight and in January, investigators visited the facilities of these brands to verify the answers they were provided by the firms in questionnaires from the Commission.
China’s Ministry of Commerce has criticized the probe, calling it “a naked protectionist act that will seriously disrupt and distort the global automotive industry and supply chain, including the EU, and will have a negative impact on China-EU economic and trade relations.”
