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EU probes into Chinese subsidies and imports

The European Union will apply extra duties of approximately 38% on imported Chinese electric cars from July in a latest effort to protect homegrown manufacturers.

It has actually likewise launched several probes into whether Chinese clean tech producers are discarding subsidised items on EU markets and whether Chinese-owned business unfairly take advantage of subsidies while running inside the European Union.

The European Commission, which is performing the examinations, says its goal is to avoid unreasonable competitors and market distortion.

Here's what you need to learn about the examinations:

ELECTRIC VEHICLES

The Commission stated on June 12 it would enforce brand-new tariffs on imported Chinese EVs over what it said were extreme subsidies.

It will apply rates of 21% for business considered to have cooperated with its anti-subsidy examination and of 38.1% for those it stated had not. Those include 17.4% for BYD, 20% for Geely and 38.1% for SAIC. The brand-new tasks will come on top of the existing EU tariff of 10%.

The provisionary responsibilities are set to use by July 4, with the anti-subsidy examination set to continue until Nov. 2, when conclusive responsibilities, typically for 5 years, could use.

TINPLATE STEEL

The Commission opened on May 16 an anti-dumping investigation into flat-rolled products of iron or steel plated or covered with Chinese tin.

The EU's main journal said the examination follows a. complaint from European steel association Eurofer.

The investigation is to be concluded within 14 months, with. the possible imposition of provisionary responsibilities in seven to eight. months.

WOOD FLOORING IMPORTS

The European Commission initiated an anti-dumping. investigation into wood floor covering imports on May 16, following a. complaint by the European Parquet Federation.

Under investigation are put together multilayered wood floor covering. panels. Panels of bamboo, or with at least the leading layer of. bamboo, are left out as are panels for mosaic floorings.

MEDICAL GADGETS

The European Commission released a probe into Chinese public. procurement of medical devices, the EU's main journal said. on April 24.

The examination is the first under the EU International. Procurement Instrument, which aims to avoid countries from. unfairly favouring domestic providers.

If the Commission discovers that European suppliers do not have. reasonable access to the Chinese market, it might put restrictions. on Chinese medical gadget companies bidding in EU public. tenders.

The investigation is to be concluded within nine months,. although the Commission can extend this duration by a more 5. months.

WIND TURBINES

The EU is examining aids received by Chinese. suppliers of wind turbines destined for Europe, the bloc's. anti-trust commissioner Margrethe Vestager stated on April 9.

It will look into wind park development in Spain, Greece,. France, Romania and Bulgaria, Vestager stated without naming. particular business.

China stated the probe was inequitable against Chinese. enterprises and endorsed protectionism.

SOLAR PANELS

The European Commission will close its investigation into. Chinese bidders in a public tender for a solar park in Romania. after the business withdrew from the process, European Industry. Commission Thierry Breton stated on May 13.

It launched 2 investigations on April 3 into whether the. Chinese individuals benefited excessively from aids in. bidding for an agreement.

It first examined a consortium making up Romania's. ENEVO Group and a subsidiary of China's LONGi Green Energy. Technology Co. The 2nd consortium investigated. comprised subsidiaries of Chinese state-owned Shanghai Electric. Group Co.

Breton stated that the Commission remembered of the withdrawal. of LONGi Solar and Shanghai Electric from bidding and would. for that reason close its examination.

(source: Reuters)