According to ECO, the European Commission will impose provisional countervailing duties on imports of electric vehicles from China, in response to what it considers to be “unfair subsidies” by Beijing for the production of these cars.

In a statement, the EU executive announced that the “Commission has imposed provisional countervailing duties on imports” of these cars, nine months after the start of an investigation into state subsidies for electric vehicles by China.

Countervailing duties are a type of tax levied on imported goods to offset subsidies granted to producers of those goods in the exporting country and will be applied from 5 July.

“Based on the investigation, the Commission has concluded that the electric battery vehicle value chain in China benefits from unfair subsidies, which are posing a threat to electric vehicle producers in the European Union,” the Commission said.

A European source told Lusa that the nearly 300-page investigation found government subsidies throughout the entire production chain of these cars. Countervailing duties are applied to three Chinese producers: BYD Auto (17.4%), Gelly (19.9%) and SAIC (37.6%).

The European Commission said it is in constant contact with Chinese authorities to find a solution that does not depend on economic restrictions.

The issue at stake is the investigation launched last October into Chinese state subsidies to manufacturers of electric cars that quickly entered the EU market and are sold at a much lower price than those of their EU competitors.

The European Commission had already threatened to increase tariffs on EU imports of electric vehicles from China from the beginning of July, after provisionally concluding that Beijing was engaging in unfair practices to the benefit of Chinese manufacturers.

According to the European Commission, Chinese vehicles have an 8% penetration of the EU market – which could double to 15% in 2025 if the same rate is maintained – and cost 20% less than European ones.

In mid-May, the United States announced new tariffs worth $18 billion (€16.6 billion) on imports of Chinese products, with electric vehicles being the hardest hit, with rates rising from 25% to 100%.