The European Commission (EC) has announced a draft decision to impose up to 36.3% definitive countervailing duties on imports of battery electric vehicles (EVs) from China.

The draft rates are lower than the provisional duties published on 4 July and took effect on 5 July, the commission said on 20 August.

The Commission said that definitive measures must be imposed no later than four months after imposition of provisional duties and definitive findings will be published by 30 October 2024 at the latest.

It granted a lower individual duty rate of 9% to US EV maker Tesla as it was classified as an exporter from China at this stage, down from the 20.8% provisional rate.

In a response to EC’s decision, China’s Ministry of Commerce said that the EU’s ruling discriminates between different types of Chinese companies which distorted the results of the investigation.

“The final ruling was based on the ‘facts’ unilaterally identified by the EU, rather than the facts recognized by both sides. China firmly opposes this and is highly concerned,” the ministry said.

The China Association of Automotive Manufacturers (CAAM) voiced strong opposition to the decision, saying that the European Commission seriously “distorted the facts” of China’s EV industry.

The EU duties bring great risk and uncertainties to Chinese companies’ operations and investment in the bloc, damage their business confidence, as well as impact EU’s development of EV industry, the association said.

The automotive industry is a major global consumer of petrochemicals, which account for more than a third of the raw material costs of an average vehicle.

EVs and associated battery markets provide growth opportunity for the chemical industry, with chemical producers separately developing battery materials, as well as specialty polymers and adhesives for the environment-friendly vehicles.