Europe looks askance at the advance of Chinese electric cars

Europe looks askance at the advance of Chinese electric cars

The European Commission has warned three Chinese electric car manufacturers that they have not provided enough information for their anti-subsidy investigation, according to two people familiar with the case.

If the Commission concludes that the information provided by the companies included in the sample BYD, SAIC and Geely is insufficient, it could use evidence available elsewhere to calculate tariffs, a measure that can inflate them.

These types of warnings are common in EU trade defense cases. In fact, in the 10 anti-subsidy cases against China where measures are still applied, the Commission used “available data” to fill certain gaps. The companies have the right to respond to the warning, the sources said.

BYD, SAIC and Geely did not immediately respond to requests for comment during a holiday in China.

The Commission, which oversees trade policy in the 27-nation European Union, launched an investigation in October to determine whether electric vehicles made in China received subsidies that distorted competition and justified the imposition of additional tariffs.

The Chinese Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) said earlier this month that the investigation targeted Chinese manufacturers.

Among their complaints was the large amount of information that the Commission has required from the Chinese producers included in the sample.

“It cannot be ruled out that the Commission will resort to what in trade defense jargon is called ‘available data’ to inflate subsidy margins,” Shi Yonghong, vice president of the CCCME, said at the time.

The investigation, officially launched on October 4, may last up to 13 months. The Commission may impose provisional anti-subsidy duties nine months after the start of the investigation.

Source: Ambito

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