EU Probes Chinese Subsidies and Imports

The European Commission proposed on Tuesday final duties up to 36.3% for imported electric vehicles manufactured in China. This is part of the most high-profile EU investigation into alleged Chinese subsidies, which has provoked threats from Beijing.

The EU has also begun investigations to determine whether Chinese clean-tech producers are dumping subventioned goods onto EU markets, and whether Chinese owned companies receive unfair subsidies when operating within the European Union.

The EU executive states that its goal is to prevent unfair market competition and distortion.

What you need to Know about the Investigations

ELECTRIC VEHICLES

On June 12, the EC announced that it would impose duties on imports from China of EVs due to what it called excessive subsidies. The EC released a draft of its definitive findings on August 20 and revised some of the proposed duties.

BYD, Geely, and SAIC will all face duties in the range of 17.0%, 19.3%, and 36.3%, respectively, if the proposal is approved. These duties are in addition to the standard 10% EU duty on imported cars.

The EU will impose a tariff of 21.3% on companies that have been deemed to be cooperative in the investigation.

It also announced a new rate for Tesla of 9%, which is lower than the 20,8% that it had stated in July.

The provisional duties were imposed on July 5. The anti-subsidy probe is expected to continue through Nov. 2. At that time, definitive duties could be imposed, usually for a period of five years.

TINPLATE STAINLESS STEEL

The EC launched an anti-dumping probe on May 16, 2004 into flat-rolled iron or steel products coated or plated with Chinese tin.

The EU's official journal stated that the investigation was a result of a complaint by Eurofer, a European steel association.

The investigation will be completed within 14 months and possible provisional duties could be imposed in 7 to 8 months.

Imports of Wood Flooring

On May 16, the European Parquet Federation filed a complaint with the EC, which led to an investigation by the EC into imports of wood flooring.

The investigation is focused on multilayer wood flooring panels. Excluded are panels made of bamboo or at least with the top layer of it.

Medical Devices

The EU's official journal announced on 24 April that the EC had launched an investigation into Chinese public purchases of medical devices.

This is the first investigation under the EU International Procurement Instrument. The instrument aims to stop countries from favoring their domestic suppliers unfairly.

The Commission could restrict Chinese companies from bidding on EU public tenders if it finds that European suppliers do not have an equal access to the Chinese market.

The investigation must be completed within nine months. However, the EC may extend this time by an additional five months.

WIND TURBINES

Margrethe Vestager, EU's antitrust commissioner, said on April 9 that the EU is investigating subsidies received from Chinese suppliers of windmills destined for Europe.

Vestager, without naming any specific companies, said that the project will examine wind park developments in Spain, Greece France, Romania, and Bulgaria.

China said that the investigation was "discriminatory against Chinese enterprises" and supported protectionism.

SOLAR PANELS

The EC closed its investigation into Chinese bidders for a Romanian solar park after Shanghai Electric and a division of LONGi Green Energy Technology Co withdrew. (Compiled and edited by Mark Potter; Susan Fenton, Milla Nissi and Chiara Holzhaeuser)

(source: Reuters)