EC Steps Up Investigation Into Chinese EV Imports

European Commission investigators are to travel to China to inspect several automakers as part of a probe into whether to push ahead with duties or tariffs on electric vehicles imported from China, according to members of the executive body of the European Union.

The group is planning to inspect manufacturing plants at BYD, Geely and SAIC.

The inspections aim to determine whether Chinese automakers have benefited from EV subsidies from the Chinese government and whether such subsidies have caused, or are likely to cause, economic harm to European Union-based EV manufacturers.

The investigation covers battery-powered EVs from China, including those from non-Chinese brands such as BMW, Renault and Tesla.

European Commission President Ursula von der Leyen first announced last Sept. 13 it would launch an investigation into EVs exported to the European Union from China and whether it would introduce duties or tariffs. The investigation was officially launched Oct. 4.

“Global markets are now flooded with cheap electric cars. And their price is kept artificially low by huge state subsidies,” von der Leyen says.

The Chinese government has officially objected to the investigation, with its Ministry of Commerce saying it was not in line with World Trade Organization rules.

“This is protectionist behavior, which will seriously disrupt and distort the supply chain of the global automotive industry, including the European Union, and negatively affect China-EU economic and trade relations,” says the Chinese Ministry of Commerce.

As part of its investigation, the European Commission already has asked European automakers for information related to EVs imported from China, including BMW, whose iX3 is produced at a factory in Dadong, China.