Beijing asked the nation’s carmakers to refrain from making major investments in European Union (EU) countries that backed additional tariffs of up to 35 per cent on Chinese-made electric vehicles (EVs).
On October 10, the Ministry of Commerce (Mofcom) summoned major automotive firms including BYD Auto, the world’s largest EV builder, as well as Volvo owner Geely. The ministry warned those assembled about the risks of setting up factories in countries like France and Italy, Reuters reported, citing people familiar with the matter.
The directive came after a vote on Chinese EV tariffs at the beginning of October: 10 EU countries supported the action and five members – including Germany and Hungary – opposed it. Another 12 members, including Spain and Belgium, abstained.
Two executives with Chinese carmakers, who spoke on condition of anonymity, told the Post that the Mofcom order is not compulsory and can be characterised as “window guidance”.
On the mainland, this kind of guidance is used by authorities to deliver verbal or written instructions to companies on government policies. Generally speaking, companies that do not comply with those directives are not punished. Mofcom did not respond to queries from the Post. Companies like BYD and Jetour that were contacted by the Post declined to comment.
The EU voted to impose tariffs on Chinese-built pure-electric cars following an anti-subsidy investigation that began in September last year. The new duties are on top of the standard 10 per cent tariff applied to pure-electric cars made in China. The tariffs will be in effect for five years.
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Publish date : 2024-10-31 01:04:00
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