By Reuters | Updated: August 20, 2024
Aug 20 (Reuters) – The European Commission on Tuesday proposed final duties of up to 36.3% on imported electric vehicles made in China, as part of the highest profile EU probe of alleged Chinese subsidies which has provoked threats of retaliation from Beijing.
It has also launched investigations into whether Chinese clean tech producers are dumping subsidised goods on EU markets and whether Chinese-owned companies unfairly benefit from subsidies while operating inside the European Union.
Advertisement · Scroll to continue
The EU executive says its aim is to prevent unfair competition and market distortion.
Here’s what you need to know about the investigations:
ELECTRIC VEHICLES
The EC said on June 12 it would impose tariffs on imports of EVs made in China over what it said were excessive subsidies. On Aug. 20, it issued draft definitive findings of the investigation and adjusted some of the proposed duty rates.
Based on the proposal, BYD (002594.SZ) will face duties of 17.0%, Geely (0175.HK) 19.3% and SAIC 36.3%. These are on top of the EU’s standard 10% duty on car imports.
Companies deemed by the EU to have cooperated with the investigation will be subject to 21.3% tariffs and those that did not cooperate a rate of 36.3%.
It also set a new reduced rate of 9% for Tesla (TSLA.O), lower than the 20.8% it had indicated in July.
Provisional duties came to force on July 5, with the anti-subsidy investigation set to continue until Nov. 2, when definitive duties, typically for five years, could apply.
TINPLATE STEEL
The EC opened on May 16 an anti-dumping investigation into flat-rolled products of iron or steel plated or coated with Chinese tin.
The EU’s official journal said the investigation follows a complaint from European steel association Eurofer.
The investigation is to be concluded within 14 months, with the possible imposition of provisional duties in seven to eight months.
WOOD FLOORING IMPORTS
The EC initiated an anti-dumping investigation into wood flooring imports on May 16, following a complaint by the European Parquet Federation.
Under investigation are assembled multilayered wood flooring panels. Panels of bamboo, or with at least the top layer of bamboo, are excluded, as are panels for mosaic floors.
MEDICAL DEVICES
The EC launched a probe into Chinese public procurement of medical devices, the EU’s official journal said on April 24.
The investigation is the first under the EU International Procurement Instrument, which aims to prevent countries from unfairly favouring domestic suppliers.
If the Commission finds that European suppliers don’t have fair access to the Chinese market, it could place restrictions on Chinese medical device companies bidding in EU public tenders.
The investigation is to be concluded within nine months, although the EC can extend this period by a further five months.
WIND TURBINES
The EU is investigating subsidies received by Chinese suppliers of wind turbines destined for Europe, the bloc’s anti-trust commissioner Margrethe Vestager said on April 9.
It will look into wind park development in Spain, Greece, France, Romania and Bulgaria, Vestager said without naming specific companies.
China said the probe was “discriminatory” against Chinese enterprises and endorsed protectionism.
SOLAR PANELS
The EC in May closed its probe into Chinese bidders in a public tender for a solar park in Romania after the companies under investigation, Shanghai Electric (601727.SS) and a unit of LONGi Green Energy Technology Co (601012.SS),withdrew from the process.
—
@ Thomson Reuters 2024
