Chinese carmakers push back against tariffs in new EU hearings

The three Chinese automakers singled out by the European Union in its anti-subsidy probe have sought and received additional hearings with regulators from the bloc as Beijing and Brussels continue to negotiate ahead of a November deadline to finalize the tariffs.  

SAIC Motor Corp., the Chinese state-owned manufacturer hit with the highest duty of the three, at 37.6%, said in a filing Monday that the European Commission had conducted a hearing on July 19, as SAIC had requested.

Zhejiang Geely Holding Group Co. has also been granted a hearing with the EU in recent days to refute the provisional duties that were announced earlier this month, a person familiar with the matter said, asking not to be identified discussing matters that are private. BYD Co. is likely to have also had a hearing.

BYD’s additional tariff is set at 17.4%, while Geely’s is 19.9%. Representatives for BYD and Geely didn’t respond to requests for comment.

The hearings are part of ongoing negotiations between China and the EU, which has accused Chinese EV makers of receiving state subsidies that give them an unfair advantage. Beijing has criticized the EU, saying the move is a breach of World Trade Organization rules and launched an anti-dumping investigation of its own into European goods, including pork and brandy.

SAIC, in its statement, said the EU had requested sensitive business information, such as providing the chemical formula it uses in batteries, which it said was out of the scope of the investigation.

EU regulators also ignored key parts of SAIC’s submission and subsequent objections, and unnecessarily added subsidies, SAIC said.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products also held a hearing with EU officials on July 18, it said in a seperate statement. The CCCME was acting on behalf of 12 Chinese EV exporters. It called the tariffs “unlawful” and said the levies negatively impact the interests of Chinese and European businesses.