Immediately after the European elections, the EU Commission wants to act against China’s distortion of competition through massive state subsidies on electric cars from its own country. A previous anti-subsidy investigation since October 2023 had previously gathered information and evidence about China’s unfair practices.

EU Commission President Ursula Von der Leyen speaks of a “customized approach” in which the tariffs imposed should correspond to the extent of the resulting damage. The German Association of the Automotive Industry (VDA), on the other hand, warns of negative effects for all sides and underlines the German automotive industry’s dependence on exports. Volker Treier, Head of Foreign Trade at the German Chamber of Industry and Commerce (DIHK), however, expects further trade barriers as a direct result of the duties on Chinese e-cars, which could damage the German economy.

The responsible Chinese authorities have until 4 July 2024 to find a WTO-compliant solution to the trade dispute before the countervailing duties are introduced.

Manufacturers of battery electric vehicles (BEV) that are affected:

  • BYD Group: 17.4 per cent on the net price
  • Geely Group: 20.0 per cent on the net price
  • SAIC Group: 38.1 per cent on the net price
  • Companies cooperating in the anti-subsidy investigation:
    21 per cent on the net price
  • All other companies: 38.1 per cent on the net price


Source: GTAI (in German), DIHK (in German), (in German)