On 29 October 2024, the European Commission (EC) confirmed the imposition of definitive countervailing duties (CVDs) on imports of Chinese battery electric vehicles (BEVs) for the transport of persons. The CVDs are due from 30 October.

The definitive CVDs conclude an almost 13-month investigation by the European Commission. They consist of ad valorem duties ranging from 7.8% to 35.3% (for Chinese BEV exporters who failed to provide adequate responses to the EC’s information requests or did not cooperate with the investigation). The CVDs are in place for a five-year period, which may be extended.

The EC will now monitor the implementation of the CVDs. On this point, a noteworthy trend has been the EC’s more frequent initiation of anti-circumvention investigations to ensure exports to do not avoid the CVDs (e.g. by shipping product from a third country or, subject to conditions, by assembling it in the EU).

Diplomatic discussions between the EU and China are ongoing. At the World Trade Organization (WTO), China has not escalated a dispute it initiated in August 2024 to dispute settlement panel concerning EU provisional measures. Rather, on 4 November 2024, China initiated a new WTO dispute against the EU’s definitive CVDs. This means that the EU and China have at least until the meeting of the WTO Dispute Settlement Body in late January to engage in bilateral consultations before the establishment of an adjudicatory panel on the definitive CVDs.

Simultaneously, China is targeting imports of EU brandy, pork and dairy products with anti-dumping investigations and measures, in what is widely regarded as retaliation for the CVDs.

Overall, the imposition of definitive CVDs constitutes an important development for EU BEV imports and EU-China economic relations.