The European Commission yesterday said that it plans to impose five-year import duties of up to 36 percent on Chinese-manufactured electric vehicles (EV), unless Beijing can offer an alternative solution to a trade row over state subsidies.
It also said that Tesla vehicles that are made in China would face a lower duty of 9 percent.
Brussels last month slapped Chinese EVs with hefty provisional tariffs — coming on top of current duties of 10 percent — after a probe found that they were unfairly undermining European rivals.
Photo: Reuters
The commission yesterday released a draft plan to make those tariffs definitive, subject to input from interested parties by end of this month and to approval by EU member states by the end October.
The definitive rates faced by major Chinese manufacturers would be 17 percent for BYD Co (比亞迪), down from 17.4 percent; 19.3 percent for Zhejiang Geely Holding Group Co (吉利控股集團), down from 19.9 percent; and 36.3 percent for Shanghai Automotive Industrial Corp (上海汽車), down from 37.6 percent.
Other producers in China that cooperated with Brussels face a tariff of 21.3 percent — revised slightly upward from 20.8 percent — while those that did not would be subject to the maximum 36.3 percent duty.
Tesla chief executive officer Elon Musk — whose company manufactures in China — had asked Brussels for its own duty rate, set at 9 percent, after the commission deemed that it benefited from fewer Chinese subsidies than domestic manufacturers.
Beijing has filed an appeal with the WTO.
“The EU is open to reach a solution that would be an alternative solution to the imposition of duties that would be effective and WTO compatible,” a commission official told reporters.
“We consider that it’s very much up to China to come up with alternatives,” the official added.
The New Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility. A strategy of borrowing the New Taiwan dollar to invest in higher-yielding alternatives has generated the second-highest return over the past month among Asian currencies behind the yuan, based on the Sharpe ratio that measures risk-adjusted relative returns. The New Taiwan dollar may soon replace its Chinese peer as the region’s favored carry trade tool, analysts say, citing Beijing’s efforts to support the yuan that can create wild swings in borrowing costs. In contrast,
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
RSS