China replies to EU EV tariffs with anti-subsidy probe of its own

China has replied to the European Commission’s electric vehicle (EV) tariffs with an anti-subsidy probe of its own. China’s Ministry of Commerce (MOC) has accepted an application to investigate subsidy schemes for dairy products exported to China from several European member states. 

The MOC announced the start of its own anti-subsidy probe on Europe’s dairy exports on Wednesday, August 21, 2024. On Tuesday, August 20, 2024, the European Commission announced new tariff rates for EV imports from China, lowering the duties from 37.6% to 36.3%. 

The MOC in China rebuked the Commission’s tariff revision, stating that it was “firmly opposed to and highly concerned” about the EU’s findings from its anti-subsidy probe on EV imports made in China. The MOC compared its own probe on Europe’s dairy products. 

During a press conference on Thursday, August 22, 2024, a spokesperson from the Ministry of Commerce, He Yadong, emphasized the difference between Europe and China anti-subsidy probes on select exports. The MOC spokesperson pointed out that the Commission’s investigation was launched without an application from an EU member state. Whereas, China’s anti-subsidy probe was launched after the Dairy Association of China and the China Dairy Industry Association submitted an application to the Chinese government for an investigation to start. 

“According to relevant Chinese laws and regulations and WTO rules, the domestic industry has the right to file trade remedy applications to maintain the normal market competition order and protect its legitimate rights,” said He Yadong. 

China will investigate 20 subsidy schemes across all 27 EU member states. It will focus on Austria, Belgium, Croatia, the Czech Republic, Finland, Italy, Ireland, and Romania. According to Reuters, a spokesperson from the European Commission, Olof Gill, responded to the MOC’s anti-subsidy probe on Europe’s dairy products. 

The European Union “will firmly defend the interests of the EU dairy industry and the Common Agricultural Policy, and intervene as appropriate to ensure that the investigation fully complies with relevant World Trade Organization rules,” said Gill.

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