EU Launches Investigation Into Chinese Electric Vehicles

Ursula von der Leyen, President of the European Commission, has already spoken a lot about this in her State of the Union Address. An investigation has now been launched into alleged Chinese dumping practices in the electric vehicle market.

The investigation, officially launched on October 5, aims to examine whether “battery electric vehicle value chains benefit from illegal subsidies in China and whether such subsidies are causing or threaten to cause economic harm to battery electric vehicle manufacturers in the EU,” according to a note published in Brussels. If the unfair competition hypotheses are confirmed, “the Commission will determine whether it is in the EU’s interests to impose anti-subsidy duties on imports of battery electric vehicles from China” to eliminate the consequences of the unfair commercial practices found.

The investigation will follow strict legal procedures in accordance with EU (European Union) and WTO (World Trade Organization) rules, allowing all interested parties, including the Chinese government, companies, and exporters, to present observations, evidence, and arguments. This investigation was launched “ex officio,” that is, without a formal complaint from any European automaker.

“The electric vehicle sector represents enormous potential for Europe’s future competitiveness and leadership in green industry,” explained Ursula von der Leyen. “EU car manufacturers and related industries are already investing and innovating to fully develop this potential. If we find evidence that their efforts are being hampered by market distortions and unfair competition, we will take decisive action. And we will do this in full accordance with our EU and international obligations, because Europe respects the rules both within its borders and around the world. The investigation into the subsidies will be thorough, fair, and fact-based.”

In accordance with the legal requirements of EU and WTO rules, prior consultations with the Chinese government were conducted before the publication of the Initiation Notice. The investigation will last a maximum of 13 months.