2023-10-04 11:38:51
The commission will investigate whether the former Asian empire is heavily subsidizing its industry
The European Commission today officially launched anti-subsidy an investigation of Chinese electric cars, according to a notice published in the Official Journal of the EU.
The investigation is on the Commission’s own initiative and not the result of a formal complaint from EU industry, as is usually the case. President Urvula von der Leyen warned about it in her State of the European Union address last month, when she said global markets were being “flooded” with cheaper Chinese electric cars, Politico reported.
The investigation followed pressure from the French government, which is pushing for Europe’s industrial defenses to be strengthened against China’s fast-growing electric vehicle industry. But this has raised concerns in Germany, whose auto industry has a strong presence in the Chinese market. Germany fears that Beijing may retaliate and start a full-scale trade war.
Brussels to investigate imports of new battery-powered passenger electric vehicles manufactured in China, regardless of whether they are Chinese or European brands. These investigations happen when a foreign country is suspected of subsidizing products in a way that harms European industry – as the EU executive believes it is.
The Commission will now seek a response from the Chinese government and the affected companies.
In a first public comment, China’s Ministry of Commerce rebuked the EU, saying its request to engage in consultations within a very short period of time was a serious violation of its rights. Beijing also complained that it was not provided with adequate advisory materials.
As part of the investigation, the Commission will have to prove whether car exporters received subsidies from the Chinese government over a certain period of time and whether these subsidies were harmful to the European industry.
Provisional duties would have to be imposed within nine months, while definitive duties would be triggered no later than 13 months after the start of the investigation.
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