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, shows 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.

The product scope aligns with CN codes previously identified in the anti-dumping case launched earlier this year.

According to the Commission, both proceedings will run in parallel, though the subsidy investigation can result in separate or combined measures depending on findings.

The Commission said it may introduce registration of imports at a later stage, which could allow for retroactive duties if “significant injury” is confirmed during the investigation period.

Sampling of Chinese exporters and EU manufacturers will be conducted over the coming weeks, with questionnaires to be issued shortly.

Interested parties will be given in principle 15 days to comment in writing on the provisional findings or on the information document, and 10 days to comment in writing on the definitive findings.