CCCEU Statement on EU Imposing Provisional Countervailing Duties on Imports of Battery Electric Vehicles from China

July 4, 2024, Brussels

On July 4, 2024, the European Commission announced provisional countervailing duties on battery electric vehicles (BEVs) imported from China, effective from July 5. The duties will be 17.4% for BYD, 19.9% for Geely, and 37.6% for SAIC. Other cooperating BEV producers face a weighted average duty of 20.8%, while non-cooperating companies are subject to a 37.6% duty.

China Chamber of Commerce to the EU (CCCEU) is deeply disappointed and dissatisfied with the EU's imposition of high provisional countervailing duties on imports of Chinese electric vehicles. We firmly oppose this politically-driven trade protectionist move by the European side.

The CCCEU welcomes the numerous rounds of technical-level consultations conducted between China and the EU regarding the EU's anti-subsidy investigation into China's electric vehicles (EVs). Chinese enterprises in Europe expect the European Commission to work with the Chinese side to find a constructive solution before the final ruling in November, to correct this trade protectionist practice, and ultimately help transform the green economy in China, Europe, and beyond.

As highlighted by the European industry, imposing tariffs on imported EVs manufactured in China will not bolster the competitiveness of European manufacturing. Instead, it will adversely affect the European electric vehicle market, undermine the interests of European consumers, and hinder the EU's efforts to reduce carbon emissions.

These tariffs will also complicate the export of electric vehicles produced by European companies in China, presenting a significant challenge to future cooperation between China and Europe in the electric vehicle sector. This includes the capability of European firms to develop globally competitive EVs by leveraging the supply chain advantages of Chinese EV manufacturing. Chinese companies echo the concerns of their European counterparts. Therefore, the CCCEU urges the European side to heed the shared voices and concerns of both the Chinese and European business communities.

According to the report "Greening Europe: Report on Development of Chinese NEV Manufacturers in Europe" co-authored by the CCCEU and the China Economic Information Service (CEIS) , which was launched on June 19 in Brussels,  Chinese companies in the new energy vehicle (NEV)sector have been increasing their investment and cooperation in Europe. By the end of 2023, Chinese NEV companies had set up more than 20 R&D centres and production bases in Europe, creating jobs and establishing close partnerships with local supply chains, boosting the development of Europe's new energy industry.

China's new energy vehicle sector thrives on innovation, decades of rigorous participation in the domestic market competition, and the extensive capabilities of China's EV supply chain, rather than relying on subsidies.

China leads the world in the number of EV patent applications, with long-term R&D investments based leadership in power batteries, motors, electronic controls, and intelligent technologies and manufacture. China's automotive industry has formed six major clusters centered around leading enterprises such as FAW Group, Dongfeng Motor Corporation, SAIC Motor, and new energy players like Tesla and BYD.

By the end of 2023, the total number of charging facilities in China reached 8.596 million , with public charging exceeding 80% in 17 major cities. In contrast, the EU had around 630,000 public charging stations, falling far short of the European Automobile Manufacturers Association's (ACEA) prediction of needing a staggering 8.8 million by 2030 to meet consumer demand.

Therefore, we urge the European side to focus on enhancing the charging infrastructure rather than adopting trade protectionist measures. Additionally, we advocate for greater cooperation between Chinese and European companies in areas such as autonomous driving, battery technology, and vehicle intelligence.

The CCCEU urges the European side to actively foster future synergies between China and Europe in the automotive sector, focusing on technological innovation, infrastructure development, mutual recognition of standards, and more.

Furthermore, we advocate for the EU’s return to a multilateralist approach that promotes free trade and global cooperation, rather than resorting to protectionism and imposing high tariffs.

The CCCEU values the extensive technical-level consultations held between China and the EU concerning the EU's anti-subsidy investigation into China's electric vehicles. We hope that China and the EU will promptly find a constructive solution through dialogue and consultation to prevent countervailing measures from adversely affecting the mutually beneficial cooperation and shared development of the automotive industry in China and Europe.