Brussels on Thursday imposed provisional countervailing duties on China-made battery electric vehicles as planned, though negotiations with Beijing continue, Kallanish reports.

The European Commission confirmed the additional tariffs on BEVs have been slightly reduced based on comments on the accuracy of the calculations submitted by interested parties. The investigation resulted in individual duties based on carmakers’ circumstances and cooperation.

Chinese carmakers BYD will be subject to an additional tariff of 17.4%. Geely’s tariff now stands at 19.9% and state-owned manufacturer SAIC’s – the parent company of MG Motors – at 37.6%. The average duty for BEV producers in China that cooperated with the EC, but were not sampled, is 20.8%. Non-cooperating firms will be hit with an import tariff of 37.6%, on top of the existing 10% duty.

These provisional duties will apply from 5 July for a maximum duration of four months, when a final decision must be taken through a vote by EU member states. “When adopted, this decision would make the duties definitive for a period of five years,” the EC explains.

Following an “exchange of views” between EC’s vice-president Valdis Dombrovskis and Chinese trade minister Wang Wentao, bilateral consultations have “intensified,” the EC adds. Contacts are continuing on a “technical level” aimed at reaching a WTO-compatible solution, it notes.

“Any negotiated outcome to the investigation must be effective in addressing the injurious forms of subsidisation identified [in China],” the commission states.

A spokesperson for the Chinese commerce ministry suggested on Thursday that despite Beijing’s “strong opposition” to the investigation, there is hope for a positive outcome.

“There is still a 4-month window before the final ruling. We hope that the EU will work with China to meet each other halfway, show sincerity, speed up the consultation process, and reach a solution acceptable to both sides as soon as possible based on facts and rules,” says He Yadong. “China hopes that the EU will seriously listen to the voices within the alliance and conduct consultations with China rationally and pragmatically to avoid anti-subsidy measures that harm the mutually beneficial cooperation and common development of the China-EU automobile industry,” he adds.

It follows the German auto association VDA’s statement saying the tariffs will harm the interests of European manufacturers operating in China, but may also restrict European access to critical raw materials.