Even taking into account the low penetration of Chinese electric vehicles in the US market.
The European Commission, based on the results of a recent investigation, came to the conclusion that it has sufficient grounds to introduce increased duties on the import of Chinese-made electric vehicles to Europe, because at the current values of customs tariffs, they turn out to be more attractive than European-made electric vehicles.
Image source: BYD
It is curious that China primarily put forward its legal claims in this area to the US authorities, which in August 2022 adopted the so-called “Inflation Control Act” (IRA), allowing certain categories of citizens of the country to purchase electric vehicles with a tax deduction of from $3,750 to $7,500, depending on the origin of the specific electric vehicle. US subsidies covered vehicles assembled in North America and equipped with traction batteries produced in countries with which the US has a free trade agreement. China, which controls a significant part of the production of traction batteries and supplies the vast majority of raw materials for their production, is not included in the list of such countries.
As CNBC explains, the Chinese authorities considered such provisions of American legislation to be discriminatory and violative of the principles and rules of the WTO. This organization recently received a formal complaint from the PRC, which will be reviewed for six months or a longer period if necessary. Chinese electric vehicles are not yet particularly represented in the US market, but these claims may serve political purposes.