Chinese electric vehicle manufacturers BYD, Geely, and SAIC have filed complaints against the European Commission regarding tariffs imposed on their EV imports.

The complaints were formally submitted to the General Court, the lower chamber of the Court of Justice of the European Union, just before the filing deadline on January 21, 2025.

The European Commission has acknowledged the situation and has until March 3, 2025, to prepare its defense against the lawsuits.

These tariffs, resulting from an anti-subsidy investigation initiated in October 2023, include specific rates of 17% for BYD, 18.8% for Geely, and a staggering 35.3% for SAIC, in addition to the standard 10% import duty.

The investigation concluded that subsidies throughout the supply chain allowed Chinese EVs to be sold at underpriced rates, threatening the European automotive industry.

Chinese manufacturers have raised concerns that Tesla, a major player in the EV market, was excluded from the sample used to determine these tariffs, which adversely affected the rates assigned to other companies.

SAIC is expected to contest its higher tariff, which was determined due to its lack of cooperation during the investigation.

The legal action questions the classification of certain funds as subsidies and the methodology used to calculate these subsidies, as well as their alleged harm to the EU single market.

The legal arguments are likely to focus on the evaluation of subsidies, proof of injury to the EU industry, and the Commission's decision to initiate the case independently.

Legal proceedings at the General Court typically last around 18 months and are subject to appeal, indicating a lengthy process ahead.

The outcome of these lawsuits could significantly impact EU-China trade relations, particularly in the electric vehicle sector.

These lawsuits may challenge regulatory decisions or trade practices that affect the manufacturers' operations in the European market.