Electric vehicles have become a major flash point in a broader trade dispute. The Commission believes Chinese subsidies to manufacturers have helped them unfairly undercut Europe’s own car industry. Chinese-built electric cars share of the European EV market went from 3.9pc in 2020 to 25pc by September 2023.
The pace of growth has sparked major fears for the future of Europe’s own car industry.
The EU Commission President, Ursula von der Leyen, said the electric vehicle sector holds huge potential for Europe’s future competitiveness and green industrial leadership. “EU car manufacturers and related sectors are already investing and innovating to fully develop this potential. Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively.” “And we will do this in full respect of our EU and international obligations – because Europe plays by the rules, within its borders and globally. This anti-subsidy investigation will be thorough, fair, and fact-based.” The new duties, which will increase prices for consumers, will come into force on October 31 unless Brussels and Beijing can hammer out an agreement in the meantime.
The duties on Chinese manufacturers, if applied, would be 17pc on cars from BYD, 18.8pc on those from Geely, which owns Polestar and Sweden’s Volvo, and 35.3pc for vehicles exported by China’s state-owned SAIC.
Other EV manufacturers in China including Western companies such as Volkswagen and BMW would be subject to duties of 20.7pc. The Commission has an “individually calculated” rate for Tesla of 7.8pc.
Beijing opposes the duties which is calls protectionist.
“China firmly opposes the EU’s unfair, non-compliant and unreasonable protectionist practices in this case, and firmly opposes the EU’s imposition of anti-subsidy duties on Chinese electric vehicles,” a spokesperson at China’s Commerce Ministry said in comments posted online.
Hungarian Prime Minister Viktor Orbán warned that the EU risks starting an “economic cold war” with China, and he pledged to vote against the duties. “This is the worst thing that can happen to Europe. … If this continues, the European economy will die,” he told state radio.
The rising tensions are threatening to spill into other sectors too.
In August the Irish dairy industry was caught up in the brewing trade row when Chinese authorities announced their own anti-subsidy investigation into imported dairy products from the EU. The move was widely seen as a tit-for-tat response to the EU moves to restrict electric vehicles from China.
China is a significant, if challenging market for Irish dairy which includes supplying the countries huge baby formula sector. The move comes just ahead of a planned trade mission by Irish ministers and officials to China next week.
Source link : https://www.independent.ie/business/eu-votes-to-slap-tariffs-on-chinese-electric-vehicle-imports/a966464214.html
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Publish date : 2024-10-04 15:23:38
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