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EU cuts planned tariff on Tesla's China-made EV imports to

9%

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Some Chinese firms in joint ventures may get reduced rates

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Other planned tariffs on Chinese EVs broadly maintained

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EU investigation ongoing, tariffs not in force yet

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Brussels and Beijing continue negotiations

(Adds detail on next steps in EU investigation in para 15

onwards)

By Philip Blenkinsop and Kate Abnett

BRUSSELS, Aug 20 (Reuters) - Tesla is set to

get a reduced tariff on its China-built cars exported to the

European Union after the bloc's executive revised on Tuesday its

proposed punitive duties on imports of Chinese-made electric

vehicles.

The revisions are part of draft findings issued by the

European Commission in the highest profile EU investigation of

alleged Chinese subsidies, which has provoked threats of

retaliation from Beijing.

The Commission, which oversees the bloc's trade policy, says

the proposed tariffs are needed to level the playing field and

counter what it says are unfair subsidies.

It set a new reduced rate of 9% for Tesla, lower than the

20.8% it had indicated in July, and said some Chinese companies

in joint ventures with EU automakers may receive lower planned

punitive duties on Chinese-made EV imports.

The tariffs are on top of the EU's standard 10% duty on car

imports.

Tesla had requested a recalculation of its rate, to be based

on the specific subsidies the company had received. The

Commission said on Tuesday it had verified that the U.S. company

received less subsidies from the Chinese government compared to

the country's EV makers Brussels had investigated.

It said it still believed Chinese EV production had

benefited from extensive subsidies and proposed final duties of

up to 36.3%. That is slightly lower than the maximum provisional

duty of 37.6% it set in July for companies that did not

cooperate with the EU's anti-subsidy investigation.

Tesla was among the companies classed as cooperating with

the EU investigation.

The Commission said the three companies it had sampled would

each receive slightly lower provisional duties. For Chinese

electric vehicle giant BYD, it said the rate was

17.0%, Geely 19.3% and SAIC 36.3%.

In July, the Commission set provisional duties of between

17.4% and 37.6%. For BYD the additional rate was

17.4%, Geely 19.9% and SAIC 37.6%.

Chinese companies in joint ventures with EU producers may

also be eligible for the lower duty rates planned for the

Chinese company in which they are integrated - as opposed to

automatically receiving the highest tariff rate, the Commission

said.

INVESTIGATION ONGOING

The planned tariffs are a draft of what could become the

EU's final measure on Chinese-made EVs once its investigation is

concluded in about two months.

Interested parties have until Aug. 30 to submit their

comments on the Commission's findings.

The proposed final duties will be subject to a vote by the

EU's 27 states. The Commission's proposal will be implemented

unless a qualified majority of 15 EU members representing 65% of

the EU population vote against.

It is a high hurdle that is rarely reached, although this is

a politically charged file.

In an advisory vote in July, 12 EU members supported the

provisional tariffs, four voted against and 11 abstained,

sources said.

Definitive duties would have to apply by Oct. 30. They

typically apply for five years.

Until then, Brussels and Beijing could still thrash out a

compromise to avert or soften tariffs. China has in the meantime

launched a challenge at the World Trade Organization.

The Commission has estimated Chinese brands' share of the EU

market has risen to 8% from below 1% in 2019 and could reach 15%

in 2025. It says prices are typically 20% below those of EU-made

models.