2023-10-04 14:43:18
The European Commission has opened an investigation into Chinese public subsidies for electric automobiles, in order to defend European industry once morest “artificially low prices”.
Loans at favorable rates, tax exemptions, components at knockdown prices: the European Commission detailed this Wednesday the first evidence that it claims to have of illegal public aid granted by Beijing to Chinese manufacturers of electric cars, at the origin of an anti-subsidy investigation.
“The Commission is in possession of sufficient evidence tending to show the existence of subsidies, a threat of injury and a causal link required for the opening of an investigation”, states the notice of opening of the procedure published in the Official Journal of the European Union.
The Commission claims to have “found evidence of the granting of loans, export credits and lines of credit provided by public banks”.
The document specifies that this investigation results from the “own initiative” of the Commission which acts “without having received a written complaint lodged by the European automobile industry”.
The practices identified may take the form of “direct transfers of funds”, “abandoned public revenue” or even “provision by public authorities of goods or services” at preferential rates, explains the notice published this Wednesday.
In particular, the Commission claims to have “found evidence of the granting of loans, export credits and credit lines provided by public banks”.
The list of aids
The list of aid from which Chinese manufacturers would have benefited, to the detriment of their European competitors, also includes “the provision of preferential export insurance, reductions and exemptions from income tax, tax exemption for dividends , import and export tax rebates, VAT exemptions and rebates, as well as the supply of goods (such as raw materials, inputs, as well as components) and services by public authorities for less than adequate remuneration.
Defend European industry
The President of the Commission, Ursula von der Leyen, announced the opening of this investigation during a speech to the European Parliament in Strasbourg on September 13, justifying it by the need to defend European industry. “Global markets are now flooded with cheap Chinese electric cars, the price of which is kept artificially low by massive public subsidies,” she said.
Beijing, for its part, denounced a “protectionist” measure which will have “a negative impact on economic relations” between the two blocs.
At the end of the investigation, the EU might decide to tax vehicles imported from China, beyond the current 10%.
The investigation, which must make it possible to gather all the necessary evidence, must be completed within a maximum period of 13 months, specifies the notice of opening of the procedure.
Ultimately, the EU might decide to tax vehicles imported from China, beyond the current 10%. But it might renounce it, even in the event of a proven infringement, if it considers that it has no interest in it. “If the existence of subsidies and resulting injury is established, it will be determined (…) whether the imposition of compensatory measures is not contrary to the interest of the Union,” underlines the document.
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