Chinese industry body urges EU to seek balanced solution in BEV probe

"Trade defense measures will harm all sides involved. The strength and growth of the EU and Chinese BEV industries lie in collaboration, not conflict," said Shi Yonghong, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

A Chinese industry body has urged the European Commission to amend its unlawful findings in the anti-subsidy probe into Chinese battery electric vehicles (BEVs), expressing hope that a balanced solution can be reached to avoid harm to both parties.

"Trade defense measures will harm all sides involved. The strength and growth of the EU and Chinese BEV industries lie in collaboration, not conflict," Shi Yonghong, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), told a press conference in Brussels on Friday.

The CCCME represents 12 Chinese BEV exporting producers, including three sampled producers individually investigated by the Commission.

OBJECTIVITY, FAIRNESS UNDERMINED

On July 4, the European Commission introduced provisional additional tariffs of up to 37.6 percent on Chinese BEV makers. The Commission alleged that the decision was based on the investigation concluding that the Chinese BEV value chain benefits from subsidies, causing a threat of economic injury to EU producers.

Shi noted that the determination is "unlawful," with the low representativeness of the samples in the investigation compromising the objectivity of the analysis.

Instead of choosing exporting producers with the largest export volumes to the EU, the Commission selected three Chinese BEV manufacturers that collectively account for 39 percent of the total Chinese export volume to the EU, and an EU sample, which represents only 30 percent in production and 32 percent in sales, according to Shi.

He noted that the Commission overlooked imports of foreign-branded BEVs from China into the EU, which constitute about 70 percent of Chinese BEVs by quantity, saying that it violates the obligation of "positive evidence" and "objective examination" in price comparisons.

"We urge the Commission to strictly abide by the laws of the World Trade Organization and the EU and conduct this investigation in a manner of objectivity, fairness, and transparency," Shi said.

INNOVATION FUELS GROWTH, NOT SUBSIDIES

Data from the China Association of Automobile Manufacturers show that China's production and sales of new energy vehicles grew over 30 percent year-on-year in the first six months of 2024, and the market share of new energy vehicles in China had reached 35.2 percent by the end of June.

Speaking of the meteoric growth of the Chinese BEV industry, Shi said the success of the Chinese BEV industry derives from technological innovation, a robust supply chain, and full competition.

Wei Wenqing, deputy secretary general of the association, said at the press conference that the Chinese government established two targets for passenger vehicle companies: reducing fuel consumption in traditional automobiles and advancing the development of new energy vehicles.

According to Wei, credit incentives and penalties have effectively motivated companies to upgrade their technology.

"It is hoped that the European side will face up to the facts that China's competitive advantage in electric vehicles does not come from subsidies," Ministry of Commerce spokesperson He Yongqian said last week.

FAIR COMPETITION BREEDS MUTUAL ADVANCEMENT

Following the EU's announcement of imposing provisional duties on imports of Chinese BEVs, EU member states and the vehicle industry voiced concerns and criticism regarding the decision.

"The negative effects of this decision outweigh any benefits for the European, and especially the German automotive industry," Volkswagen stressed.

Wei pointed out that open competition and free trade would promote the progress of the local automotive industry, as evidenced by the history of China's automotive development.

"European brands such as Volkswagen, Mercedes-Benz, BMW, and Audi all occupy a dominant position in the Chinese imported car market, and the Chinese automotive firms were boosted by and emerged from the intense competition," Wei said.

Looking ahead, there are still broad prospects for cooperation between the EU and China in fields such as technology and research and development, according to Shi.

"China and the EU are comprehensive strategic partners with extensive common interests," Shi said, urging the Commission to take into consideration the overall interests of the EU and China.