Deadline for Chinese EV price offers expire, says EU
China explores retaliatory measures as EU nears decision on EV tariffs
The European Commission has announced that the deadline for Chinese electric vehicle (EV) manufacturers to submit price commitments as a means of avoiding potential tariffs has elapsed, with no further opportunity to revise their offers following their universal rejection.
The Commission, currently engaged in an anti-subsidy investigation targeting Chinese-manufactured EVs, disclosed that several EV exporters had put forward price undertakings. These undertakings represent a commitment from exporters to adhere to minimum import prices, effectively counterbalancing subsidies.
A spokesperson for the Commission clarified on Monday that the cutoff date for submitting such proposals was August 24, emphasising that the regulations governing this type of investigation preclude the possibility of presenting new price undertakings beyond this deadline.
While reiterating its openness to finding a resolution, the EU executive stressed that any solution must fully comply with World Trade Organisation (WTO) regulations and effectively counteract the identified subsidies.
The Commission's spokesperson revealed that all price undertakings from Chinese automakers were received precisely on the August 24th deadline. This timing left no room for resubmissions after the initial offers were rejected. The spokesperson pointed out that Chinese automakers had ample time - several weeks - prior to the deadline to propose these price undertakings. Had they done so earlier, it would have allowed for meaningful discussions on the subject.
In response to the situation, the Commission has proposed implementing final tariffs of up to 35.3 per cent on EVs produced in China. These would be applied in addition to the EU's standard 10 per cent import duty on cars.
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The EU's 27 member states are scheduled to vote on the proposed final duties on September 25.If approved, these tariffs will take effect by the end of October, unless a qualified majority opposes the levies. This qualified majority requires 15 EU members representing 65 per cent of the EU population to vote against the measures.
While achieving such a majority is typically challenging, the politically charged nature of this issue, coupled with China's threats of retaliatory measures targeting pork, dairy products, and brandy, could potentially sway some EU nations.