Three Chinese automakers singled out by the European Commission (EC) in its anti-subsidy probe have sought and received additional hearings, becoming part of the ongoing negotiations between China and the EU on the bloc's decision to impose extra tariffs on China-made electric vehicles (EVs). The hearings are an important way to safeguard the legitimate rights and interests of Chinese enterprises, as well as an important platform to strengthen communication and exchanges between China and Europe. Zhejiang Geely Holding Group, BYD and SAIC Motor, which was hit with the highest duty among the three at 37.6%, all participated in hearings. “Essentially, Chinese original equipment manufacturers (OEMs) made their position heard on supporting the EU Green Transition and commitment to free trade, and they went over some of the details of the investigation, and explained why the brands are unhappy and frustrated with the process and the outcome,” a source with knowledge of the matter told the Global Times.
SAIC noted that the EC's investigation involves commercially sensitive information, such as requesting chemical formulas related to batteries, which is beyond the normal scope of the investigation. The China Chamber of Commerce for Import and Export of Machinery and Electronic Products pointed out at the hearing that the EC had violated WTO rules during the preliminary ruling, and the subsidy margin calculated in the current preliminary ruling did not reflect the real situation of the sampled enterprises in China. “The hearings can help Chinese car companies use legal means to protect their rights and interests, as they can directly present their positions and views to the EC, providing detailed evidence and justifications to refute the allegations,” said Zhang Xiang, Secretary General of the International Intelligent Vehicle Engineering Association (IIVEA).
Hearings are also an important platform for strengthening communication and exchanges between China and the EU through in-depth discussions. This will help promote the proper resolution of the EV issue and avoid further escalation of trade disputes, Wang Peng, Associate Research Fellow at the Beijing Academy of Social Sciences, said.
European countries remain divided on the issue. Triinu Prits, an official at the Ministry of Foreign Affairs of Estonia, said in an interview that Estonia is not convinced that raising tariffs is the optimal solution. Estonia does not have an automotive industry like Germany, but this does not mean that tariffs would not affect Estonia, Prits noted. “We, too, have subcontractors, importers, car maintenance providers and consumers. All these stakeholders are connected to the EU's single market. Any political and economic measures, or lack thereof, and potential countermeasures, can lead to very unpredictable consequences.” IIVEA's Zhang said that the EU's decision to raise Chinese EV tariffs is a political consideration, a policy to follow the U.S. to suppress China's economy. Opposition comes mainly from EU companies, which have long-established good cooperative relations with China, and the tariff policy will hurt their revenue and their position in international trade, the Global Times reports.
