Statement on EU’s vote on adopting definitive tariffs on China-made battery electric vehicles Go back »

2024-10-05 | All chapters

Background

On 4th October, EU Member States voted on whether to confirm tariffs on electric vehicles (EVs) being exported from China to the EU. In the absence of a qualified majority in opposition (15 member states representing 65 per cent of the EU’s population), the tariffs were approved. An implementing regulation that includes the definitive findings of the Commission’s investigation will be published by 30th October, but the EU and China will continue to work on an alternative solution before that date.

The Commission has clearly indicated that it would need to take measures to protect itself from any distortions to the single market. This decision comes after a nearly year-long trade defence investigation, in accordance with WTO principles, in which the Commission worked to understand the effect that subsidies had had on EV makers in China.

Statement

The EU’s tariffs are intended to prevent companies that obtained subsidies in China not available to their competitors from gaining an unfair advantage in the EU’s single market, and target both Chinese and foreign-invested EV makers in China.

The European Chamber continues to believe that dialogue is the preferred avenue for resolving trade disputes. It understands that the EU’s investigation and the application of tariffs has been carried out in compliance with WTO rules.

The relationship between Europe and China has created immense value in the past and has significant potential for future value creation. As such, the Chamber supports the EU and China to consider a negotiated solution with a view to ensuring a level-playing field in the relationship and addressing imbalances.  

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