The European Commission's proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has gained the necessary backing from EU Member States, paving the way for the adoption of tariffs. This decision marks a significant milestone in the Commission's ongoing anti-subsidy investigation into subsidized electric cars from China.

This decision represents a further step towards the conclusion of the Commission's anti-subsidy investigation into China's electric cars, where president Von der Leyen emphasized the importance of the electric vehicle sector for Europe’s competitiveness and green industrial leadership, stating, “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.”

She assured that the Commission's actions would comply with EU and international obligations, underscoring a commitment to fairness in the marketplace. "This anti-subsidy investigation will be thorough, fair, and fact-based,” von der Leyen added.

In parallel, the EU and China are actively exploring alternative solutions to the current dispute. These efforts aim to ensure that any resolution is fully compliant with World Trade Organization (WTO) rules, adequately addresses the subsidization issues identified by the Commission's investigation, and remains monitorable and enforceable.

Meanwhile, the European Automobile Manufacters' Association (ACEA), has emphasized that "free and fair trade is essential" for a competitive European automotive industry, as it fosters innovation and consumer choice. However, they note that trade alone is not enough. For Europe to remain competitive in the electric vehicle market, a "comprehensive industrial strategy" is crucial, including access to critical materials, affordable energy, infrastructure expansion, and regulatory consistency. ACEA also expects anti-subsidy regulations to be released by the end of October, while also recognizing ongoing negotiations between Brussels and Beijing as an alternative to countervailing duties.

The final findings of the Commission's investigation, including a Commission Implementing Regulation, are expected to be published in the Official Journal by October 30, 2024, at the latest. As both parties continue negotiations, the outcome of this investigation will significantly impact the future of the electric vehicle market in Europe.