EU to sharply raise tariffs on Chinese-made electric cars, risks sparking trade war / Article

The EC believes that China is unfairly subsidizing its car manufacturers and, after further investigation and unable to reach an agreement with China to stop these subsidies, decided to increase impose tariffs on Chinese electric cars for five years.

The Chinese Ministry of Commerce criticizes this decision as unfair, unfair and has already filed an appeal with the World Trade Organization.

The EC has investigated that the Chinese car manufacturers “BYD”, “SAIC” and “Geely” receive large subsidies from the government – in the form of money, discounts and various benefits.

In addition, China produces as much steel as the rest of the world combined. Previously, a 10% import tax was applied to Chinese electric cars, but now the new tariffs have been added.

“Tesla” cars made in China will face an increase of 7.8%, “BYD” cars will be taxed 17%, and “Geely” electric cars will have a tax of 18.8%, but the biggest target will be ( 35.3%). applied by Chinese state automobile company “SAIC” products.

Now the importers of these cars have to collect customs duty at the border, in addition to the price.

European car market experts believe that Europeans will not feel that the price increase is too much, because Chinese car manufacturers should be able to absorb these taxes and even make a profit. Experts hope these targets will slow the growth of China’s electric car market share in Europe and give local European makers some breathing room, as they struggle.

“Audi” announced on Tuesday that they will close their factory in Brussels next February. “Volkswagen” previously announced that it plans to close three factories in Germany – this car manufacturer has never taken such a step in its home country.

Germany was the one who opposed the new tariffs because they fear that the Chinese will retaliate and as a result German car exports to China will suffer.

Ten European Union member states, including France, Poland and Italy, supported the tariffs in a vote this month, while five, including Germany, opposed the taxes. Another 12 stops.

Meanwhile, China’s largest electric car maker, BYD, posted quarterly earnings better than its American rival Tesla for the first time. Experts say that China is already a full generation ahead of Europe in the field of electric car technology.

The tariff increase has raised concerns that the move could lead to a wider trade war between the EU and China.

China has already ordered automakers to halt large investments in European countries that have supported additional duties on Chinese-made electric vehicles. This is reported by the group “Reuters”, referring to two sources.

In a meeting with Chinese carmakers in mid-October, officials from China’s Ministry of Commerce are said to have indicated that vehicle manufacturers should stop making large investments, such as plans to build factories, in European countries that have supported tariffs against Chinese electric cars.

For example, China’s second largest car exporter, SAIC, plans to open its second European spare parts plant in France this year. The Italian government, on the other hand, is negotiating with the Chinese car manufacturer “Chery” regarding the inflow of investments.

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