The European Commission targets Chinese battery electric vehicles with provisional duties to counteract subsidies

On July 4, 2024, the European Commission imposed provisional countervailing duties on imports of battery electric vehicles (BEVs) from China.

Under its traditional trade defense rules (Basic Regulation (EU) 2016/1037) the EU can impose duties to counteract subsidies that cause or threaten to cause injury to the European industry.  After an eight-month investigation, the Commission identified various forms of subsidization to Chinese BEV producers, including preferential financing, grant programs, the provision of goods and services for less than adequate remuneration, and tax exemptions.  The Commission found there was an imminent threat of material injury to the Union BEV industry, based on a projected surge of low-priced BEV imports that would likely capture significant market share and impede the heavy and sustained rate of investment required for the Union industry to transition to full BEV production.

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