Commission launches investigation on subsidised electric cars from China

The European Commission has formally launched an anti-subsidy investigation into the imports of battery electric vehicles (BEV) from China. The investigation will first determine whether BEV value chains in China benefit from illegal subsidisation and whether this subsidisation causes or threatens to cause economic injury to EU BEV producers. Should both prove true, the investigation will examine the likely consequences and impact of measures on importers, users and consumers of battery electric vehicles in the EU.

Based on the investigation's findings, the Commission will establish whether it is in the EU's interest to remedy the effects of the unfair trade practices found by imposing anti-subsidy duties on imports of battery electric vehicles from China.

The investigation, announced by Ursula von der Leyen on 13 September in the State of the European Union (SOTEU) speech, will follow strict legal procedures in line with EU and WTO rules, allowing all parties concerned, including the Chinese government and companies/exporters, to present their comments, evidence and arguments.

Ursula von der Leyen, president of the European Commission (pictured), said: “The electric vehicle sector holds huge potential for Europe's future competitiveness and green industrial leadership. EU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively. And we will do this in full respect of our EU and international obligations - because Europe plays by the rules, within its borders and globally. This anti-subsidy investigation will be thorough, fair, and fact-based.”

Trade Commissioner Valdis Dombrovskis said: “Electric battery vehicles are crucial for the green transition and to meet our international commitments to reduce CO2 emissions. This is why we have always welcomed global competition in this sector, which means more choice for consumers and more innovation. But competition must be fair. Imports must compete on the same terms as our own industry. Fairness is also the watchword for this investigation: we will consult all relevant parties, and we will adhere rigidly to domestic and international rules. We hope for full cooperation from all relevant parties. The outcome will be based on facts."

A press release is available online.

Share this article: