Automakers 'gravely concerned' over any long-term EU tariffs

Chinese makers of battery-powered electric vehicles are "gravely concerned" over any European Commission move to levy long-term countervailing duties on imports of BEVs from China, as they are seriously considering Europe as a major investment destination, said the China Chamber of Commerce for Import and Export of Machinery and Electric Products.

A number of European countries have been hoping that Chinese BEV makers will invest and set up factories in Europe.

The EC's imposing of countervailing duties on Chinese BEV makers aims to hinder the export of Chinese products to Europe and thus encourage Chinese companies to invest in Europe and promote the development of the local automobile industry, help increase local employment and achieve green and sustainable development goals, the chamber said.

"Before it launched its anti-subsidy investigation into Chinese BEV makers, many Chinese companies had already started or planned to invest or operate in Europe," said Shi Yonghong, vice-president of the chamber.

"Since the EC decided to impose temporary countervailing duties, Chinese companies have repeatedly expressed their strong opposition, as they have been concerned about the investigation's result and the potential risks of investing in Europe," Shi said.

The preliminary ruling contains numerous judgments lacking objectivity and fairness, and some procedural practices lack transparency, said the chamber.

The subsidy label identified by the EC in the investigation is likely to become an excuse for it to conduct further investigations — namely Foreign Subsidy Regulation investigations — into Chinese enterprises investing in Europe in the future, and such potential has caused deep concerns and worries among Chinese enterprises.

In October last year, the EC initiated an anti-subsidy investigation into imports of Chinese-made BEVs designed for the transport of persons. On July 4, it imposed provisional countervailing duties on BEV imports.

The duties applying to the Chinese producers range from 17.4 percent to 37.6 percent. The provisional countervailing duties would apply for a maximum of four months.

Within the period, a final decision has to be made on definitive duties through a vote by EU member states. Once adopted, the definitive duties will be in place for five years.

The chamber said the most important factor for attracting global investors, including China, to invest in Europe is that the EU could provide a friendly and stable business environment.

Frequently launching various unfair and unjust investigations against enterprises will obviously intensify companies' concerns about the business environment and investment risks in Europe, the chamber said.

"It would be in the best interests of everyone concerned to avoid imposing the countervailing duties. If the EC labels Chinese BEV makers as beneficiaries of government subsidies, it would have a negative impact on those companies, including power battery manufacturers," Shi said.