EU launches probe into Chinese tire subsidies

Brussels - The European Commission on 6 Nov announced the initiation of anti-subsidy proceedings concerning imports of new pneumatic tires used on cars, buses or lorries from China.

The investigation covering tires "with a load index not exceeding 121" follows a complaint that these products are being subsidised and are thereby causing injury to the EU industry.

The complaint was lodged on 22 Sept by the Coalition Against Unfair Tyre Imports, according to the Commission.

This, it said, contains sufficient evidence that manufacturers of the products under investigation "have benefitted from a number of subsidies granted by the Chinese government."

The evidence, added the EU,  showed that the imports from China had increased significantly and impacted pricing and market-share of the EU industry

This, in turn, resulted in "adverse effects on the overall performance, the financial situation and the employment situation of the Union industry."

The alleged subsidy practices include direct transfer of funds, provision of goods or services and preferential loans, as well as grants and tax exemptions, provision of land and help with electricity and other operating costs.

EC rules allow 13 months for completion of its investigation in the complaint  towards the possible imposition of measures against the Chinese-based producers involved.

The investigation of subsidisation and injury will cover the period from 1 January 2024 to 31 December 2024. 

The Commission also noted its separate, on-going anti-dumping investigation covering the same product.

More to follow...