Brussels (The Brussels Morning Newspaper) – A Chinese industry body has recommended the European Commission to revise its unlawful conclusions in the anti-subsidy probe into Chinese battery electric vehicles (BEVs), voicing hope that a balanced solution can be advanced to evade harm to both parties.
Will EU Revise Anti-Subsidy Ruling on Chinese BEVs?
“Trade defence measures will hurt all sides involved. The strength and growth of the EU and Chinese BEV industries lie in cooperation, not conflict,” Shi Yonghong, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CME) said. The CME denotes 12 Chinese BEV exporting producers, including three tested producers individually examined by the Commission.
On July 4, the European Commission raised provisional extra tariffs of up to 37.6 per cent on Chinese BEV manufacturers. The Commission alleged that the judgment was based on the investigation that the Chinese BEV value chain advantages from subsidies, driving a threat of economic injury to EU producers.
Is the EU’s BEV Tariff Decision Fair and Objective?
Shi stated that the determination is “unlawful,” with the inferior representativeness of the samples in the analysis compromising the impartiality of the analysis. Instead of picking exporting producers with the biggest export volumes to the EU, the Commission decided on three Chinese BEV manufacturers that collectively account for 39 per cent of the total Chinese export volume to the EU, and an EU sample, which denotes only 30 per cent in production and 32 per cent in sales, according to Shi.
How Might EU’s Anti-Subsidy Measures Impact BEV Trade?
He stated that the EU Commission ignored imports of foreign-branded BEVs from China into the EU, which comprise about 70 per cent of Chinese BEVs by quantity, stating that it violates the responsibility of “positive evidence” and “objective examination” in price comparisons.”We urge the Commission to rigorously abide by the laws of the World Trade Organization and the EU and conduct this analysis in a manner of objectivity, fairness, and transparency,” Shi stated.
What Drives Growth in China’s BEV Industry: Innovation or Subsidies?
Stats from the China Association of Automobile Manufacturers indicate that China’s production and sales of new energy vehicles increased over 30 per cent year-on-year in the first six months of 2024, and the market allocation of new energy vehicles in China had acquired 35.2 per cent by the end of June.
Articulating the meteoric growth of the Chinese BEV industry, Shi conveyed that the success of the Chinese BEV industry emanates from technological innovation, a strong supply chain, and full competition.
Wei Wenqing, deputy secretary general of the association, stated at the press conference that the Chinese government appointed two targets for passenger vehicle companies: lowering fuel consumption in traditional automobiles and promoting the development of new energy vehicles.
According to Wei, credit incentives and liabilities have effectively motivated businesses to upgrade their technology.
