In the wave of global green energy transition, the rapid development of China's electric vehicle industry has attracted widespread attention from the international community. However, the EU's final anti-subsidy measures on China's electric vehicles have not only had an impact on China's electric vehicle industry, but also had a negative impact on global green transition cooperation. China Exportsemi will try to deeply analyze the background and impact of this incident, as well as China's position and possible solutions.
Background and impact
The European Commission launched a countervailing investigation into Chinese electric vehicles in October 2023, and on October 29, 2024, it decided to impose a final countervailing duty on electric vehicles imported from China for a period of five years, with a rate between 17% and 35.3%. This decision was firmly opposed by China's Ministry of Commerce, which held that the EU's measures lacked factual and legal basis, violated WTO rules, and were an abuse of trade remedy measures.
China's NEV exports will reach 1.735 million units in 2023, up 55% year-on-year, of which BEV exports will be 1.545 million units, up 63% year-on-year, accounting for 92%. From January to April 2024, China's NEV exports were 663,000 units, up 27% y/y, of which 649,000 passenger cars were exported, up 30% y/y. This data shows China's importance in the global electric vehicle market and the potential impact of EU measures on Chinese exports.
Pictured: China is fighting back against the EU's countervailing duties on electric vehicles, with 6 million exports pending
China's position and actions
China believes that the EU's final countervailing measures not only harm the development interests of China's electric vehicle industry, but also affect global cooperation on green transformation. In order to safeguard the interests of the development of the electric vehicle industry and global cooperation on green transformation, China has brought the EU's preliminary anti-subsidy measures on electric vehicles to the WTO, and filed an additional lawsuit on November 4. The spokesperson of the Ministry of Commerce stressed that the EU's measures are practical actions against trade protectionism, and urged the EU to immediately correct its illegal practices and jointly maintain the stability of the global electric vehicle industry chain and supply chain and the overall situation of China-EU economic and trade cooperation.
Data & Analytics
The development of new energy vehicles in China has not only promoted the electrification transformation of the global automotive industry, but also provided a strong impetus for the development of the global automotive industry. According to research by the International Energy Agency, global electric vehicle sales will account for more than half of new car sales by 2030. However, China's new energy vehicle industry is facing the dual pressure of fierce competition in the domestic market and tariff barriers in overseas markets. On September 13, 2024, the United States announced a significant increase in tariffs on China's new energy products, imposing 100% tariffs on Chinese electric vehicles. The Canadian government followed the United States in announcing a 100% tariff on electric vehicles imported from China starting Oct. 1. In order to protect its auto industry, the EU has implemented a series of trade barrier measures aimed at restricting the entry of Chinese new energy vehicle products.
Technical details and character perspectives
Chen Qingquan, an academician of the Chinese Academy of Engineering, pointed out that the development of electric vehicles in China needs to be improved, including: excessive reliance on subsidies, weak core technological innovation capabilities, and imperfect charging infrastructure construction. He stressed that although the global cooperation of the new energy vehicle industry has been hindered, electrification will eventually be the development direction of the automobile industry, and globalization is a major trend that is irreversible.
Solutions & Prospects
China has made it clear that it hopes to resolve its differences through consultations, promote negotiations on the price commitment agreement, and is fully committed to reaching a mutually acceptable solution through friendly dialogue and consultation. The EU has also said it is willing to continue negotiations with China on a potential agreement to avoid such tariffs, even after the proposed tariffs on Chinese electric vehicles.
Conclusion
China's final ruling on the EU's anti-subsidy measures against electric vehicles at the WTO is not only a necessary action to protect its own legitimate rights and interests, but also an important measure to promote the healthy development of the global electric vehicle industry. In the context of the global green transition, China and the EU should jointly maintain the stability of industrial and supply chains and promote the sustainable development of the global electric vehicle industry through dialogue and cooperation. Through this plan, China not only strives for a level playing field for its electric vehicle industry, but also plays an important role in the global green energy revolution and becomes an important force for future transportation transformation.
