On Monday 12 January, the European Commission presented a guidance document for Chinese exporters of electric vehicles who wish to apply to circumvent EU countervailing duties by negotiating a minimum import price.
According to the document, this minimum price, which will be monitored by the Commission, must be “set at a level appropriate to remove the injurious effects of the subsidisation” of which Chinese manufacturers are accused.
The guidance document follows the Commission’s assessment of the price undertaking offer made last December by China-based Volkswagen (Anhui) Automotive (see EUROPE 13766/31).
According to a European Commission spokesperson, the publication of this policy paper should not be interpreted as a withdrawal of EU countervailing duties. However, the door has not been closed on this alternative for future offers.
Referring to the offer from Volkswagen (Anhui) Automotive, Olof Gill explained that it was “the first serious commitment offer we have received”, which is currently under consideration.
“We’ve taken the decision to issue this more detailed additional guidance in the event that more offers will come. So far, they have not. If they come, we’ll be happy to assess them in detail. And if they tick the boxes (…) then they could potentially replace the anti-subsidy duties we have put in place following our detailed and fact-based investigation”, he explained, before adding: “But let’s just all calm down a bit. It’s guidance at this stage. Nothing more”.
In October 2024, as part of an anti-subsidy investigation, the EU imposed definitive countervailing duties ranging from 7.8% to 35.3% on imports of electric vehicles from China. In this context, it is indeed possible for a Chinese producer to negotiate a minimum price in order to avoid the countervailing duty.
The Chinese Ministry of Commerce reacted in a public statement on Monday, praising the “spirit of dialogue” and the ability of the EU and China to “properly resolve differences through dialogue”.
To see the European Commission’s guidelines: https://aeur.eu/f/k7x (Original version in French by Pauline Denys)