What’s new: SAIC Motor Corp. Ltd. (600104.SH) has fully cooperated with the European Commission’s anti-subsidy investigation and provided all necessary information in accordance with World Trade Organization and EU rules, the Chinese automaker told Caixin.
SAIC’s response follows a Reuters report Friday that the commission has warned three Chinese electric-vehicle (EV) makers that they have not supplied sufficient information for its anti-subsidy investigation, citing people familiar with the matter.
The investigation, officially launched in October, targeted BYD Co. Ltd. (002594.SZ), Geely Automobile Holdings Ltd. and SAIC Motor Corp. Ltd., three of China’s biggest carmakers. The probe sought to find out whether new battery EVs from China benefitted from subsidies including direct transfer of funds or tax breaks that allow them to undercut their EU rivals.
The commission’s warning could prompt it to gather evidence elsewhere for its probe, which could inflate any resulting countervailing measures such as tariffs. The three companies have a chance to respond to the warning, Caixin has learned.
BYD and Geely did not respond to requests for comment.
The background: The European Commission said Oct. 4 that it would spend up to 13 months to complete the investigation. Commission staff conducted inspections at the three Chinese carmakers in January, Caixin has learned.
The China Chamber of Commerce to the EU said Saturday that the companies have been very cooperative with the inquiries, including responding to multiple questionnaires and facilitating on-site inspections.
The chamber also said that the companies perceived some of the EU’s demands as excessive, including tight deadlines for extensive paperwork and requests for information related to core business secrets.
Read more Caixin Explains: EU Probe Into Chinese EV-Makers’ Alleged State Support
Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
