EU Sets Guidelines For Chinese Electric Cars To Avoid Tariffs

BRUSSELS/BEIJING, Jan 12 (Bernama-dpa) -- The European Commission on Monday published guidelines for electric car manufactures producing in China, offering ways to avoid countervailing tariffs introduced in 2024 in a long-running row over Chinese subsidies, reported German Press Agency (dpa).

Companies can submit price undertaking offers for battery-powered vehicles exported to the European Union, according to the guidance document.

Each offer is to be assessed individually in line with World Trade Organisation (WTO) rules.

These proposals are to include "the minimum import price, sales channels, cross-compensation and future investments in the EU," the commission said, and are meant to balance out market distortion caused by Chinese subsidies for car makers.

The EU's countervailing duties were introduced in 2024 to protect the bloc's automotive industry after an investigation by the commission had concluded that, due to large subsidies, Chinese-built cars could be sold in the EU for around 20 per cent less than domestically produced cars.

The extra tariffs vary between 7.8 per cent and 35.3 per cent depending on the manufacturer. Foreign companies operating in China are also affected, including Tesla, BMW and Mercedes-Benz.

In retaliation, China imposed additional tariffs on imports from the EU, including on spirits, pork and dairy products.

Beijing's Ministry of Commerce welcomed the guidelines, saying that the progress made shows that both sides are able and willing to resolve differences within the framework of the WTO.

Prior to the publication of the guidelines, the commission "received one offer from a company on one particular model for a price undertaking" which is currently being assessed, a spokesman for the commission said.

-- BERNAMA-dpa