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China's SAIC Motor seeks European Commission hearing on EV tariffs
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China's SAIC Motor seeks European Commission hearing on EV tariffs
Jul 5, 2024 1:05 AM

BEIJING, July 5 (Reuters) -

China's SAIC Motor will request a hearing from

the European Commission on the extra duties it faces, the

company said on Friday, as the European Union's provisional

tariffs on made-in-China EVs took effect.

"The European Commission overlooked some of the

information and counter-arguments submitted by SAIC during the

investigation," the state-owned automaker said in a statement.

SAIC's request comes a day after the Commission

published

findings

from its nine-month investigation into China's EV market,

giving insight into the evidence it collected to support

Brussels' largest trade case yet.

The provisional duties of between 17.4% and 37.6% are

designed to prevent what the Commission's president Ursula von

der Leyen has described as a threatened flood of cheap EVs built

with state subsidies.

The report details reluctance by the Chinese government

and SAIC to cooperate with the investigation, justifying

slapping SAIC with the highest tariff rate of 37.6%. Fellow

Chinese automakers BYD and Geely face

lower tariffs of 17.4% and 19.9%, respectively. These are on top

of the EU's standard 10% duty on car imports.

There is, however, a four-month window during which the

tariffs are provisional and intensive talks are expected to

continue between the two sides as Beijing threatens wide-ranging

retaliation.

After the announcement of provisional duties in the EU

official journal, interested parties such as China and EV makers

have until July 18 to comment. They can also request a hearing.

While negotiations continue, automakers are

re-evaluating their pricing strategies based on the provisional

rates.

"What's been creating the most anxiety for China EV Inc

has been the uncertainty of how their products will be received

in these international markets," said Tu Le, founder of

consultancy Sino Auto Insights.

"But it now seems like with the U.S. and EU settled on

tariffs and rates, they can now adjust their global strategies

to include this new normal."

A spokesman for SAIC subsidiary MG in France

told

Reuters the automaker had enough MG4 vehicles in stock "to

last until November without increasing prices."

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