EU launches 1st formal review of Chinese EV tariffs after VW Anhui’s submission

The EU has for the first time launched a formal review of a price undertaking offer from a company seeking to avoid its tariffs on Chinese-made electric vehicles, following a submission from Volkswagen’s Chinese joint venture.

Over the course of 12 to 15 months, the European Commission will examine whether VW Anhui can replace its countervailing duties with a managed price system in a move that would effectively equalise the impact of the tariffs.

While the commission is not reopening its lengthy investigation – a source of tension with Beijing – the fact that it has finally accepted a narrow review process from a manufacturer may give others hope that tariffs could be reduced or removed.

It is understood that VW Anhui started shipping its latest Cupra electric vehicle to Europe only after the investigation was completed and therefore could qualify for dispensation.