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.
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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.
VW Anhui is a joint venture between Volkswagen and JAC Motors located in Hefei, in China’s Anhui province.
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