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Chinese industry body tells EU to correct its findings on EVs
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Chinese industry body tells EU to correct its findings on EVs
Jul 19, 2024 9:37 AM

BRUSSELS, July 19 (Reuters) - EU tariffs on electric

vehicles built in China breach global trading rules and must be

corrected, an industry body representing 12 Chinese automakers

told the European Commission in a hearing this week.

The China Chamber of Commerce for Import and Export of

Machinery and Electronic Products (CCCME) presented its view at

a hearing on Thursday that the EU's preliminary assessment is

incompatible with EU and World Trade Organization rules.

"We are very concerned. We urge the Commission to correct

these unlawful findings and terminate the investigation (into

Chinese EV subsidies)," CCCME vice president Shi Yonghong told a

briefing of reporters on Friday.

The European Union imposed provisional tariffs of between

17.4% and 37.6% earlier in July on EVs made in China, including

Chinese brands BYD, Geely and SAIC as well as models built in

China by Western manufacturers such as Tesla and BMW.

Shi said domestic producers had a stable share of the EU

market and so there was no sign of imminent injury, EU industry

losses were not caused by imports, and the investigation lacked

transparency and was beset with procedural anomalies.

The Commission, which oversees EU trade policy and will

continue its investigation until the end of October, says it is

not trying to shut out Chinese EVs, but that measures are

required to ensure a level playing field.

"Our investigation is fully in line with all relevant EU and

WTO rules," a spokesperson said.

Shi said Chinese automakers wanted Brussels and Beijing to

negotiate a balanced solution, although there remained a large

gap between the average EU provisional duty of 20.8% and China's

push for no measures.

"To reach middle ground, we're talking about somewhere

between zero and 20%," he said.

Shi described the average tariff as "unreasonable and

inflated" and said that separate EU investigations into the

impact of foreign subsidies in the EU market risked deterring

Chinese car and battery makers from investing in Europe.

"I think this is of great interest to (EU) member states

because many member states are expecting investment from China,"

he said.

EU members will get a final say on duties at the end of the

investigation. In a non-binding vote this week, they exposed

divided views on the merits of tariffs.

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