EU Investigates Imports And Subsidies From China

In a further move to defend domestic producers, the European Union will apply duties of up to 37.6% on imported electric vehicles manufactured in China starting on July 5. This would increase trade tensions with Beijing.

Investigations have also been initiated into whether Chinese clean tech manufacturers are dumping subsidised goods on EU markets and if Chinese-owned businesses are unjustly receiving subsidies while doing business in the EU.

The investigations are being conducted by the European Commission, which claims that its goal is to stop unfair competition and market distortion.

What you should know about the investigations is as follows:

Electric Vehicles 

The Commission said on June 12 that it will apply additional duties to EV imports manufactured in China due to what it claimed to be exorbitant subsidies.

On July 5, the temporary duties will take effect, and the anti-subsidy inquiry will continue until November 2, at which point definitive duties, which usually last for five years, may become applicable.

According to the EU, BYD will pay 17.4% in customs, Geely 19.9%, and SAIC 37.6% as of July 4. These are in addition to the 10% ordinary EU tariff on imports of automobiles.

Businesses that the EU determined had assisted with the probe, such as the western automakers Tesla and BMW, will pay tariffs of 20.8%, while those that did not assist will pay 37.6%.

Tinplate Steel

An anti-dumping inquiry into flat-rolled items made of iron or steel that have been plated or coated with Chinese tin was launched by the Commission on May 16.

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The European Steel Association, or Eurofer, filed a complaint, which prompted the probe, according to the EU’s official journal.

Within seven to eight months, temporary duties may be imposed following the completion of the inquiry, which is scheduled to end in 14 months.

Imports of Wood Flooring

On May 16, in response to a complaint by the European Parquet Federation, the European Commission opened an anti-dumping inquiry into imports of wood flooring.

The constructed multilayered wood flooring panels are being examined. Bamboo panels, or panels containing bamboo at least on top, are not allowed, nor are panels intended for mosaic flooring.

Medical Equipment

The EU’s official journal announced on April 24 that the European Commission has opened an investigation into Chinese public procurement of medical products.

This is the first probe conducted in accordance with the EU International Procurement Instrument, which strives to stop nations from unjustly favouring their own suppliers.

Chinese medical equipment firms who bid in EU public tenders may face limitations if the Commission determines that European suppliers lack equitable access to the Chinese market.

The Commission may choose to extend the investigation’s deadline by an additional five months, but it must be finished within nine months.

Wind Turbines

According to EU antitrust commissioner Margrethe Vestager, the EU is looking into subsidies that Chinese manufacturers of wind turbines going to Europe got. This was announced on April 9.

Vestager stated, “Without naming specific companies, it will look into wind park development in Spain, Greece, France, Romania, and Bulgaria.”

China said the investigation supported protectionism and was “discriminatory” against its businesses.

Solar Panels

Following the businesses’ withdrawal from the process, the European Industry Commission’s probe into Chinese bids in a public bidding for a solar park in Romania will be concluded, European Industry Commission Thierry Breton announced on May 13.

On April 3, it opened two investigations to determine if the Chinese bidders received undue advantage from subsidies.

It started by looking at a group that included ENEVO Group from Romania and a LONGi Green Energy Technology Co. subsidiary from China. The second consortium under investigation included Shanghai Electric Group Co., a state-owned company in China, and its subsidiaries.

According to Breton, the Commission will end its inquiry having noted Shanghai Electric’s and LONGi Solar’s departure from the bidding process.

(Adapted from AlJazeera.com)

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