European Commission investigators are to test Chinese automakers in the coming weeks as part of a probe into whether they will impose punitive tariffs to protect European electric car makers, three people involved in the investigation told News.ro.

Two sources said inspectors would visit BYD, Geely and SAIC, with one specifying that investigators would not visit non-Chinese brands made in China, such as Tesla, Renault and BMW.

The investigation, which began in October and is scheduled to last 13 months, aims to determine whether cheaper electric cars made in China are unfairly benefiting from government subsidies.

The investigation, which China has called protectionist, has escalated tensions between Beijing and the EU.

The European Commission has confirmed that it will make visits.

“The Commission has selected a representative sample of manufacturers from China and the EU who have already responded to the questionnaire,” said Olof Gill, spokesman for the European Trade Commission.

“In January-February 2024, the commission will make inspection visits to their premises,” he said.

China’s Ministry of Commerce, BYD and SAIC did not immediately respond to requests for comment. Geely declined to comment, but referred to an October statement that the company complies with all laws and supports fair competition in the global market.

Control visits

One source said investigators had arrived in China, while another source said visits were planned for this month and February.

The visits are intended for verification – on-site inspections that check car manufacturers’ responses to questionnaires, the source said.

European Commission documents for the investigation say it is “at an early stage” and that verification visits are scheduled until April 11.

The sources asked not to be named because details of the visit are confidential.

Last week, China launched an anti-dumping investigation into cognac imported from the European Union, a move that appeared to be aimed at France, which supports the investigation into electric cars.

Electric cars from China are cheaper than models made in the EU

Popular Chinese models exported to Europe include SAIC’s MG and Geely’s Volvo.

Chinese cars’ share of the European Union’s EV market has risen to 8% and could reach 15% in 2025, with these EVs typically selling for 20% less than EU-made models.

In October, China’s Great Wall Motor said it had become the first carmaker to respond to an EU subsidy investigation.

Relations between China and the EU have been strained by factors such as Beijing’s closer ties with Moscow following Russia’s invasion of Ukraine.

The EU is trying to reduce its dependence on the world’s second-largest economy, especially for the materials and products needed for its green transition.

At the same time, Chinese EV makers, from market leader BYD to smaller rivals Xpeng and Nio, are ramping up efforts to expand overseas as domestic competition heats up and domestic development slows.

Many manufacturers have prioritized sales to Europe. China overtook Japan as the world’s largest auto exporter last year, shipping 5.26 million vehicles worth about $102 billion, according to estimates from the China Automobile Association.