European Commission Vice President Sefcovic said that the EU will loosely interpret the "Made in Europe" regulations to give car manufacturers more time to shift battery sourcing from Asia to Europe. Earlier this week, the European Union launched a countervailing investigation into Chinese-made cars on the grounds of protecting the local electric vehicle industry.

The EU's "exclusive" stance on developing new energy industries may be loosened.

On Friday, October 6, Eastern Time, European Commission Vice President Maros Sefcovic, who is responsible for implementing the Brexit agreement, told the media that the EU is drafting a plan to suspend tariffs on electric vehicles imported into the UK for one year.

Sefcovic said the EU would interpret "Made in Europe" rules loosely to give carmakers more time to switch battery sourcing from Asia to Europe. The European Commission wants to redefine what constitutes a European product under so-called "rules of origin".

Sefcovic did not disclose the specific timetable for the above-mentioned British tariff plan, but said that it was being discussed internally. He also said he would be happy if a deal could be finalized before the December 31 deadline.

However, there is still a gap between the plan revealed by Sefcovic and the three-year delay that the British government hopes to implement. According to the Brexit agreement, the EU will impose a 10% tariff on electric vehicles sold from the UK to the EU from next year.

The UK and EU have been negotiating for months on whether to extend the tariffs, and the EU has yet to make any decision.

Reports emerged earlier this week that most EU member states, led by Germany, were open to delaying tariffs. France was the main opposition, as the French government did not want to appear subservient to British demands.

The media pointed out that European car manufacturers hope to delay the imposition of tariffs for three years to buy more time for the development of the battery supply chain in Europe. The industry estimates that if tariffs are imposed as scheduled, the entire industry will lose 4.3 billion euros in the next three years, and China's opponents will benefit.

Recently, the European Union has just launched an investigation into Chinese-made cars on the grounds of protecting its own electric car industry.

On Wednesday, October 4, local time, the European Union announced that it would officially launch a countervailing investigation into electric vehicles imported from China. The investigation will be concluded within 13 months of its initiation. The EU can impose temporary countervailing duties within 9 months.

However, the EU proactively admitted in an official statement that it has not yet received any lawsuit from the EU industry in this regard.

The EU said it initiated the investigation because China's share of electric vehicles sold in Europe has risen to the current 8%. In addition, China's overcapacity problem will cause its market share in Europe to further increase in the future, reaching 15% in 2025. This will pose a threat to the EU electric vehicle industry.

A spokesman for the Ministry of Commerce of China responded immediately, pointing out that the EU's investigation was based only on subjective assumptions about so-called subsidy projects and threats of damage, lacked sufficient evidence to support it, and was inconsistent with relevant rules of the World Trade Organization (WTO). China expressed strong dissatisfaction with this. The European side required China to conduct consultations within a very short period of time and failed to provide effective consultation materials, which seriously damaged China's rights.

The spokesperson said that China has made it clear before that the investigative measures proposed by the EU are in the name of "fair trade" and are actually intended to protect its own industry. They are naked protectionist acts that will seriously disrupt and distort the global automotive industry chain and supply chain, including the EU, and have a negative impact on China-EU economic and trade relations. China will pay close attention to the EU's follow-up investigation procedures and firmly safeguard the legitimate rights and interests of Chinese companies.