EU probes into Chinese subsidies and imports
The European Commission obtained the necessary support in a vote to impose duties of up to 45% on imported electric vehicles made in China, as part of the EU’s highest-profile probe into alleged Chinese subsidies that has provoked threats of retaliation from Beijing.
It has also launched investigations into whether Chinese clean tech producers are dumping subsidized goods on EU markets and whether Chinese-owned companies unfairly benefit from subsidies while operating inside the European Union.
The Commission says its aim is to prevent unfair competition and market distortion.
The investigations cover electronic vehicles, tinplate steel, wood flooring imports, medical devices, wind turbines and solar panels.
Electric vehicles
The EC said on June 12 it would impose tariffs on imports of China-made EVs over what it said were excessive subsidies, with provisional duties coming into force in July. On October 4, it received the necessary support from the EU member states to adopt the tariffs in a split vote.
The proposed duties of up to 45% would cost carmakers billions of extra dollars to bring cars into the bloc and are set to be imposed from November for five years.
The EC, which needs to publish an implementing regulation by Oct. 30 for the tariffs to apply, said it would continue talks with Beijing to find an alternative solution.
Tinplate steel
The EC opened on May 16 an anti-dumping investigation into flat-rolled products of iron or steel plated or coated with Chinese tin.
The EU’s official journal said the investigation follows a complaint from European steel association Eurofer.
The investigation is to be concluded within 14 months, with the possible imposition of provisional duties in seven to eight months.
Wood flooring imports
The Commission initiated an anti-dumping investigation into wood flooring imports on May 16, following a complaint by the European Parquet Federation.
Under investigation are assembled multilayered wood flooring panels. Panels of bamboo, or with at least the top layer of bamboo, are excluded, as are panels for mosaic floors.
Medical devices
The Commission launched a probe into Chinese public procurement of medical devices, the EU’s official journal said on April 24.
The investigation is the first under the EU International Procurement Instrument, which aims to prevent countries from unfairly favoring domestic suppliers.
If the Commission finds that European suppliers don’t have fair access to the Chinese market, it could place restrictions on Chinese medical device companies bidding in EU public tenders.
The investigation is to be concluded within nine months, although the Commission can extend this period by a further five months.
Wind turbines
The EU is investigating subsidies received by Chinese suppliers of wind turbines destined for Europe, the bloc’s anti-trust commissioner Margrethe Vestager said on April 9.
It will look into wind park development in Spain, Greece, France, Romania and Bulgaria, Vestager said without naming specific companies.
China said the probe was “discriminatory” against Chinese enterprises and endorsed protectionism.
Solar panels
The Commission in May closed its probe into Chinese bidders in a public tender for a solar park in Romania after the companies under investigation, Shanghai Electric and a unit of LONGi Green Energy Technology Co, withdrew from the process. [Reuters]
