European Commission Launches Investigation into Subsidised Chinese Electric Cars Threatening EU Industry

Today, the European Commission formally initiated an anti-subsidy investigation into the imports of battery electric vehicles (BEVs) from China. The investigation aims to assess whether the BEV value chains in China benefit from illegal subsidisation, potentially causing economic harm to EU BEV producers.

President Ursula von der Leyen, who announced the investigation on September 13 in the State of the European Union speech, emphasized the significance of the electric vehicle sector for Europe’s competitiveness and green industrial leadership. The investigation will adhere to strict legal procedures, providing opportunities for all concerned parties, including the Chinese government and exporters, to present their comments and evidence.

The Commission launched this investigation proactively, driven by evidence indicating a surge in low-priced and subsidised imports of electric vehicles from China, posing a threat to the EU’s electrical car industry. Despite no formal complaint from EU industry, anti-subsidy rules require cooperation in the investigation.

The process, following EU and WTO rules, involves pre-initiation consultations with the Chinese government. The investigation will conclude within a maximum of 13 months, with provisional anti-subsidy duties, if warranted, imposed within 9 months. Definitive measures may follow within 13 months of the investigation’s initiation.

The European Commission assures a thorough, fair, and fact-based investigation to uphold the principles of fair trade within the EU and globally.