EU Tariffs on Chinese EVs Face Legal Challenge
The European Union’s decision to impose tariffs on Chinese-made electric vehicles (EVs) has sparked a legal backlash. Three prominent Chinese EV manufacturers, BYD, Geely, and SAIC, have filed complaints with the Court of Justice of the European Union (CJEU), contesting the tariffs imposed on their exports.
Tariffs Imposed Following Anti-Subsidy Investigation
In October, the EU introduced tariffs on Chinese EVs, citing an anti-subsidy investigation. The tariffs range from 17% for BYD to 35.3% for SAIC, in addition to the standard 10% car import duty. The EU’s decision has significant implications for the EV industry, particularly for Chinese manufacturers seeking to expand their presence in the European market.
Challenging the EU’s Decision
The three Chinese EV makers have lodged their complaints with the General Court, the lower chamber of the CJEU. The proceedings are expected to last around 18 months and can be appealed. While the details of the cases remain unclear, the challenges are likely to focus on the assessment of subsidies, the establishment of injury to EU industry, and the Commission’s decision to launch the case without an industry complaint.
Disputing Tariff Rates
SAIC, in particular, is expected to contest its higher tariff rate, which was determined due to its lack of cooperation with the investigation. The company argues that the Commission’s decision to fill in missing information with selected available facts was unfair. Furthermore, Chinese EV makers have expressed concerns that Tesla, the largest exporter of EVs from China to the EU, was not included in the official sample used to calculate the tariff rates.
Consequences for the EV Industry
The legal challenge has significant implications for the EV industry, particularly for Chinese manufacturers seeking to expand their presence in the European market. If the tariffs are upheld, it could lead to increased costs for consumers and potentially hinder the growth of the EV market in Europe. On the other hand, if the challenges are successful, it could pave the way for greater competition and innovation in the industry. The European Commission has two months and 10 days to prepare its defense, and the outcome of the cases will be closely watched by industry stakeholders.
Leave a Reply