This week, at a hearing before the European Commission, an industry group representing twelve Chinese automakers claimed that EU tariffs on electric vehicles manufactured in China were illegal and needed to be lifted.

At a hearing on Thursday, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) expressed its opinion that the preliminary assessment made by the EU is not compliant with regulations set out by the EU and the World Trade Organisation.

“We have serious concerns. CCCME vice president Shi Yonghong told a press event on Friday, “We urge the Commission to correct these unlawful findings and terminate the investigation (into Chinese EV subsidies).”

In July, the European Union placed temporary duties on electric vehicles (EVs) manufactured in China, including models manufactured by Western companies like Tesla and BMW as well as Chinese businesses BYD, Geely, and SAIC. The levies ranged from 17.4% to 37.6%.

According to Shi, there was no indication of an impending harm because local manufacturers had a steady portion of the EU market; imports were not the reason for the losses suffered by the EU sector; and the probe lacked openness and was riddled with procedural irregularities.

The Commission, which is in charge of EU trade policy and will carry out its inquiry through the end of October, claims that while it is not attempting to exclude Chinese electric vehicles, some steps must be taken to guarantee fair competition.

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A spokeswoman said, “Our investigation is fully in line with all relevant EU and WTO rules.”

Although there was still a significant difference between China’s demand for no measures and the average EU temporary tariff of 20.8%, Shi stated that Chinese automakers wanted Beijing and Brussels to negotiate a fair settlement.

“To reach middle ground, we’re talking about somewhere between zero and 20%,” he stated.

Shi claimed that the average tariff was “unreasonable and inflated” and that separate inquiries by the EU into the effects of foreign subsidies on the EU market ran the danger of discouraging Chinese automakers and battery manufacturers from making investments in Europe.

“I think this is of great interest to (EU) member states because many member states are expecting investment from China,” he said.

At the conclusion of the investigation, EU members will have the last word on tariffs. This week, they revealed differing opinions on the virtues of tariffs in a nonbinding vote.

(Adapted from USNews.com)

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