“Trade defense measures will harm all parties involved. The strength and growth of the EU and Chinese BEV industries lies in cooperation, not conflict,” said Shi Yonghong, vice chairman of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

BRUSSELS, July 21 (Xinhua) — A Chinese industry association has called on the European Commission to change its unlawful findings in the anti-subsidy investigation into China’s battery electric vehicles (BEVs), hoping that a balanced solution can be reached to avoid harm to both sides.

“Trade defense measures will harm all parties involved. The strength and growth of the EU and Chinese BEV industries lies in cooperation, not conflict,” Shi Yonghong, vice chairman of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), told a news conference in Brussels on Friday.

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

OBJECTIVITY AND HONESTY UNDERMINE

On July 4, the European Commission imposed provisional additional tariffs of up to 37.6 percent on Chinese BEV makers. The Commission said the decision was based on its investigation, which concluded that the Chinese BEV value chain benefits from subsidies, creating a threat of economic harm to EU producers.

Shi noted that the finding is “unlawful” because the low representativeness of the samples in the study compromises the objectivity of the analysis.

Instead of selecting the exporting producers with the largest export volumes to the EU, the Commission selected three Chinese BEV manufacturers accounting for 39 percent of total Chinese export volumes to the EU, and an EU sample representing only 30 percent in production and 32 percent in sales, Shi said.

He noted that the Commission had overlooked the import of foreign BEVs from China into the EU. These imports account for approximately 70 percent of Chinese BEVs in terms of volume. According to him, this is in breach of the obligation of ‘positive evidence’ and ‘objective examination’ in price comparisons.

“We urge the Commission to strictly adhere to the laws of the World Trade Organization and the EU and to conduct this investigation in an objective, fair and transparent manner,” Shi said.

INNOVATION FEEDS GROWTH, NOT SUBSIDIES

Data from the China Association of Automobile Manufacturers shows that production and sales of new energy vehicles in China increased by more than 30 percent year-on-year in the first six months of 2024. As of the end of June, the market share of new energy vehicles in China was 35.2 percent.

Shi talked about the tremendous growth of China’s BEV industry and said that the success of China’s BEV industry comes from technological innovation, robust supply chain and full competition.

Wei Wenqing, deputy secretary-general of the association, said at the press conference that the Chinese government has set two goals for passenger car companies: reducing the fuel consumption of traditional cars and promoting the development of new energy vehicles.

According to Wei, credit incentives and penalties have actually encouraged companies to improve their technology.

“We hope the European side will realize that China’s competitive advantage in electric vehicles does not come from subsidies,” He Yongqian, spokesman for the Ministry of Commerce, said last week.

FAIR COMPETITION LEADS TO MUTUAL PROGRESS

After the EU announced it would impose provisional import duties on Chinese electric vehicles, EU member states and the automotive industry expressed concerns and criticism over the decision.

“The negative effects of this decision outweigh the 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 auto industry, as shown in the history of China’s auto industry.

“European brands such as Volkswagen, Mercedes-Benz, BMW and Audi all hold a dominant position in the Chinese imported car market. Chinese carmakers took advantage of the fierce competition and emerged as winners,” Wei said.

According to Shi, there are still broad prospects for EU-China cooperation in technology and research and development.

“China and the EU are strategic partners with strong common interests,” said Shi, who urged the Commission to take into account the overall interests of the EU and China.■