The EU’s Anti-Subsidy Policy Towards Chinese Electric Vehicles: Navigating the Risks of Escalating Trade Tensions

On 13 September 2023, during her annual State of the Union address, European Commission President Ursula Von der Leyen announced the opening of an anti-subsidy investigation into imports of battery electric vehicles (BEVs) from China.

Nine months later, after a long and arduous investigation, on 12 June 2024 the European Commission announced the imposition of additional customs duties on Chinese electric vehicles of up to 50% for certain brands. Implemented provisionally from the 4th of July 2024 onwards, this surtax is dividing European Union (EU) member states, which are now exposed to the risk of retaliation from China, raising the threat of a larger-scale trade war.

Authors: Rémi Tamin, Junior Researcher and Louis Burnett, University of East Anglia

Image Credits: Unsplash