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Chinese Electric Cars

EU Opens Anti-Subsidy Investigation Into Chinese Electric Cars

The most popular Chinese electric vehicles in the EU are the BYD Han, the NIO ES8, and the XPeng P7. In 2021, a total of 128,933 Chinese electric vehicles were sold in the EU. Chinese Electric Cars  eu

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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, President of the European Commission, 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 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.”

An own-initiative case Chinese Electric Cars eu

The Commission launched this investigation on its own initiative (ex officio), having gathered sufficient evidence that the recent surge in low-priced and subsidised imports of electric vehicles from China into the EU posed an economic threat to the EU’s electrical car industry.

electric vehicles

While no formal complaint was received from EU industry to launch proceedings, the EU’s anti-subsidy rules stipulate that EU industry be requested to cooperate in the ex officio investigation.

As per legal requirements under EU and WTO rules, pre-initiation consultations were held with the Chinese government prior to the publication of the Notice of Initiation.

Procedure and next steps

The Notice of Initiation published today summarises the allegations and explains the procedure that will be followed to determine the potential existence of subsidisation which constitutes a threat to the EU industry.

The investigation will be concluded within maximum 13 months of initiation. If legally warranted, any provisional anti-subsidy duties may be imposed by 9 months after initiation, with any definitive measures to be imposed up to 4 months later or within 13 months of the initiation of the investigation.

Chinese Electric Vehicles: A Threat to European Automakers?

The BYD Han is a full-size electric sedan that was first released in 2020. It has a range of up to 706 kilometers and can accelerate from 0 to 100 kilometers per hour in just 3.9 seconds. The NIO ES8 is a seven-seater electric SUV that was first released in 2018. It has a range of up to 570 kilometers and can accelerate from 0 to 100 kilometers per hour in just 4.9 seconds. The XPeng P7 is a four-door electric sedan that was first released in 2020. It has a range of up to 706 kilometers and can accelerate from 0 to 100 kilometers per hour in just 4.3 seconds.

The popularity of Chinese electric vehicles in the EU is due to a number of factors, including their affordability, their range, and their performance. Chinese electric vehicles are typically much more affordable than European or American electric vehicles. This is due to a number of factors, including the lower cost of labor in China, the government subsidies that are available to Chinese automakers, and the economies of scale that Chinese automakers have achieved.

Chinese electric vehicles also have a longer range than many European or American electric vehicles. This is due to the fact that Chinese automakers have focused on developing long-range electric vehicles. The BYD Han, for example, has a range of up to 706 kilometers, which is longer than the range of any Tesla model.

Finally, Chinese electric vehicles offer good performance. The BYD Han, for example, can accelerate from 0 to 100 kilometers per hour in just 3.9 seconds. This is faster than the acceleration of many European or American electric vehicles.

The popularity of Chinese electric vehicles in the EU is likely to continue to grow in the coming years. This is due to the fact that Chinese automakers are continuing to develop new and innovative electric vehicles, and the EU is becoming more supportive of electric vehicles.

 

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