EU Opens Countervailing Duty Investigation on EV Batteries From China

The European Commission on Oct. 4 officially launched a countervailing duty investigation on electric vehicle batteries from China. The investigation, previewed in September by Commission President Ursula von der Leyen (see 2309140009), will focus on whether the battery value chains in China benefit from "illegal subsidization," and, if so, whether these subsidies cause or threaten economic injury to EU manufacturers, the commission said. If both are true, the commission said, it will determine if it is in the bloc's interest to remedy the subsidies via duties. The commission said that, per World Trade Organization rules, it carried out pre-initiation consultations with the Chinese government. The commission said the investigation will take a maximum of 13 months, and anti-subsidy duties may be taken nine months after initiation.