The European Union announced this Thursday the provisional adoption of additional compensatory duties of up to 38% to Chinese companies manufacturing electric vehicles, considering that these firms benefit from “unfair” subsidies.<\/p>\n
The European Union announced this Thursday the provisional adoption of additional compensatory duties of up to 38% to Chinese companies manufacturing electric vehicles, considering that these firms benefit from “unfair” subsidies.<\/p>\n
These subsidies represent a “threat of economic damage to European producers,” the European Commission, the EU’s executive arm, said in a statement.<\/p>\n
The new tariffs will apply from July 5.<\/p>\n
The EU intends to adopt a definitive measure in November, but until that period it will maintain dialogue with China in search of a solution, although the Chinese authorities have already warned that they will apply retaliatory measures.<\/p>\n
The Chinese Chamber of Commerce in the EU (CCCEU) denounced Thursday’s decision as a “protectionist measure.”<\/p>\n
The entity, which represents more than a thousand Chinese companies in the EU, said it felt “deeply disappointed and dissatisfied” by the decision announced this Thursday.<\/p>\n
In its statement, the European Commission pointed out that the adoption of these provisional and additional tariffs is the result of an investigation that lasted nine months.<\/p>\n
That investigation, the Commission noted, concluded that the electric car value chain in China “benefits from unfair subsidies, which is causing a threat of economic harm to EU producers.”<\/p>\n
“The investigation has also examined the possible consequences and impacts of these measures on importers, users and consumers of electric cars in the EU,” he added.<\/p>\n
Thus, the Commission announced the provisional adoption of tariffs of 17.4% for the giant BYD, and 19.9% \u200b\u200bfor Geely, as well as customs duties of 37.6% for SAIC.<\/p>\n
Other electric car producers in China that cooperated in the investigation are subject to average tariffs of 20.8%, while for companies that did not cooperate it rises to 37.6 percent.<\/p>\n
In May, the European Commission had already threatened to increase tariffs up to 38%, which would be added to the current import duties of 10 percent.<\/p>\n
Hope in dialogue
\nThe move will come despite trade talks between China and the EU on June 22.<\/p>\n
According to European Trade Commissioner Valdis Dombrovskis, the EU will continue to “collaborate intensively with China on a mutually acceptable solution.”<\/p>\n
“Any negotiated outcome of our investigation must clearly and fully address the EU’s concerns and respect World Trade Organization rules,” the official said in a note.<\/p>\n
Last month, China opened an investigation into pork imports, threatening Spanish exports.<\/p>\n
Chinese officials have also criticized investigations targeting state subsidies in the green technology sector, including wind turbines and solar panels.<\/p>\n
The EU seeks to generalize electric vehicles, as the bloc will ban the sale of new cars powered by fossil fuel engines from 2035.<\/p>\n
At the same time, it is proposed to protect the bloc’s automobile industry.<\/p>\n
However, Germany – an automobile powerhouse and an important trading partner of the Asian giant – fears that high tariffs will generate retaliation that will hit its activities in the Chinese market.<\/p>\n
This Thursday, the German giant Volkswagen rejected the high tariffs announced by the EU, considering them “harmful.”<\/p>\n
“The negative effects of this decision outweigh the possible benefits for the European automobile industry and in particular for Germany,” the group said.<\/p>\n
Electric vehicles from China represent almost 22% of the European market, compared to 3% just three years ago, according to estimates from the automotive sector.<\/p>\n
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