The EU yesterday moved to hike tariffs on Chinese electric vehicles (EVs), escalating a trade dispute over Beijing’s subsidies for the exports that Brussels worries is hurting domestic automakers.
The European Commission, the EU’s executive arm, said it would impose provisional tariffs that would result in Chinese automakers facing additional duties of as much as 38 percent, up from 10 percent.
The commission said it reached out to Chinese authorities to discuss the findings of its investigation into the subsidies and “explore possible ways to resolve the issues.”
Photo: AP
“Should discussions with Chinese authorities not lead to an effective solution,” the new rates would take effect on a provisional basis by July 4, the commission said in a news release.
Electric vehicles are the latest flash point in a broader trade dispute over what Brussels says is China’s unfair state support for green technology exports that also include solar panels, batteries and wind turbines.
Imports of Chinese-made EVs to the EU have skyrocketed in the past few years. They include vehicles from Western brands that have auto plants in China, including Tesla Inc and BMW AG.
However, EU officials complain that Chinese automakers like BYD Co (比亞迪) and SAIC Motor Corp (上海汽車) are increasing market share and undercutting European brands on price thanks to Beijing’s massive subsidies.
The commission said an investigation it opened last year into China’s EV subsidies found that China’s battery electric vehicle (BEV) value chain “benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers.”
The extra tariffs would vary by company. BYD would face an additional 17.4 percent charge. Geely Holding Group Co (吉利控股集團), which owns Sweden’s Volvo Car Corp, would be hit with a further 20 percent. For SAIC, it would be 38.1 percent extra.
The EU’s tariffs, while high, are lower than the US’ 100 percent rate imposed from last month on Chinese EVs.
Not all 27 EU member states welcome the commission’s move, with Germany, Hungary and Sweden already expressing reservations about the investigation and the push to slap higher duties.
Chinese Ministry of Foreign Affairs spokesman Lin Jian (林劍), speaking at a daily news briefing, said the EU’s investigation was “typical protectionism,” adding that Beijing would “take all measures necessary to protect our legitimate rights and interests.”
US President Joe Biden slapped major new tariffs on Chinese EVs, advanced batteries, solar cells, steel, aluminum and medical equipment last month.
Biden said that Chinese government subsidies ensure the nation’s companies do not have to turn a profit, giving them an unfair advantage in global trade.
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