Further defenses SAIC asks for EU hearing

In order to effectively safeguard its legitimate rights and interests and the interests of its global customers, SAIC will formally request the European Commission to hold a hearing on China's provisional countervailing duty measures on electric vehicles and further exercise its right of defense in accordance with the law.

On June 12, 2024, the EC issued a pre-disclosure of preliminary ruling information, which calculated a subsidy rate of 38.1% for SAIC. In response to the calculation error in the pre-disclosure of the preliminary ruling, SAIC promptly filed a protest. on July 4, the EC formally announced the results of the preliminary ruling, announcing that the duty rate was 37.6% and planned to impose provisional countervailing duty accordingly, and SAIC will file further protests in accordance with the law .

The content of the defense includes: the EC countervailing investigation involves commercially sensitive information, such as the investigation requires cooperation in providing chemical formulas related to batteries, etc., which is beyond the normal scope of the investigation. The EC made errors in its determination of subsidies, such as including the new energy purchase subsidy for domestic consumers in the calculation of the subsidy rate for sales in the EU. The EC ignored some of the information and defenses submitted by SAIC in the course of the investigation, and based on the so-called "non-cooperation with the investigation" under Article 28 of the Basic Countervailing Regulation, it made an unfavorable presumption and inflated the subsidy rates of a number of items.

The global automobile industry is accelerating into a new era of electrification and intelligence. Over the past ten years, SAIC has invested nearly 150 billion yuan in R&D, obtained more than 26,000 valid patents, and successfully launched the "Seven Technology Chassis" with internationally leading technology level to build core technology competitiveness for the new intelligent and electric race track, which is the fundamental reason why SAIC MG sells well in Europe. SAIC opposes artificial barriers to trade in new energy vehicles and calls for a fair and competitive market order. It is through open dialog and cooperation that China and Europe can accelerate the cohesion of innovative forces and jointly build a global green low-carbon economy.


                                                                  Shanghai Automotive Group Corporation
                                                                                                                July 5, 2024