Primary Law
4 instrumentsDefinitive duties: BYD 17.4%, Geely 19.9%, SAIC 37.6%, others 20.8–38.1%. Based on anti-subsidy investigation finding massive state support. China filed WTO dispute (DS632). Some Chinese OEMs establishing EU assembly (BYD Hungary) to circumvent. EU EV imports from China dropped ~28% since provisional duties.
Addresses market-distorting foreign subsidies in EU internal market. Three tools: ex officio investigations, merger notification (€500M+ with €50M+ foreign subsidy), public procurement notification (€250M+ contracts). Commission reviewing 500+ cases. First in-depth investigation: Chinese-backed wind turbine bids in Romania/Bulgaria. Major de-risking tool.
Four pillars: promote competitiveness, protect against economic coercion, partner with like-minded countries, defend critical technologies. Key actions: outbound investment screening (targeting AI/quantum/biotech), enhanced export controls, FDI screening strengthening. China not named but clearly targeted. Outbound screening most controversial — Germany/Netherlands business opposition strong.
EU’s counter-coercion weapon. Allows Commission to impose countermeasures (tariffs, investment restrictions, public procurement bans) against third countries using economic coercion against EU/member states. Designed for scenarios like China’s Lithuania trade embargo. Not yet activated. Activation requires Council QMV support.