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EU probe into EV imports from China could lead to tariffs

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CCCME says sample selection has tainted process

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CCCME complains of lack of transparency, double standards

(Updates with European Commission comment)

By Philip Blenkinsop

BRUSSELS, April 12 (Reuters) - The European Union's

investigation into electric vehicles is stacked against Chinese

manufacturers, not transparent and in violation of global

trading rules, even before its outcome is known, a Chinese

industry body said on Friday.

The European Commission launched an investigation last

September into whether to impose punitive tariffs to protect

European Union producers against cheaper Chinese electric

vehicle imports it says are benefiting from state subsidies.

Shi Yonghong, vice president of the China Chamber of

Commerce for Import and Export of Machinery and Electronic

Products (CCCME), said he was concerned the findings would be

"distorted and unobjective".

His comments came after China's top trade official warned

Brussels against protectionism.

The CCCME, which is representing 12 Chinese EV producers in

the case and had a hearing with the European Commission on

Thursday, said its prime concern was over the EU's executive's

choice of companies to sample.

These are BYD, Geely and SAIC

. However, it does not include the top exporters from

China to the EU, which according to campaign group Transport &

Environment were Tesla and Renault's Dacia in

2023.

Yonghong told a press briefing that the Commission had

departed from its principle of selecting the largest exporters

and seemed to have purposely selected three Chinese-owned

producers to reach predetermined findings of subsidisation.

"This biased sample selection has tainted the entire

investigatory process," he said.

Yonghong said the investigation also lacked transparency,

with EU manufacturers granted anonymity and the EU providing

inadequate data, such as on the assessment of injury to EU

industry.

The European Commission said the investigation and its

findings would fully respect EU and international obligations.

"Europe plays by the rules, within its borders and globally.

This anti-subsidy investigation is thorough, fair, and

fact-based," a spokesperson said.

Yonghong said Chinese manufacturers were not harming EU

carmakers. They concentrated on different market segments than

EU counterparts, the EU industry had maintained a high market

share and the key importers from China were the EU producers

themselves, he said.

He added that several EU manufacturers had expressed

opposition to the investigation. BMW has said the

probe could do more harm than good.

Yonghong also said the case was a "perfect example of the

EU's double standards", given that the EU was not taking any

action against the near $400 billion of subsidies of the U.S.

Inflation Reduction Act and was itself pumping billions of euros

into battery and EV production.