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Despite EU reduction in tariffs on e-cars: China continues to criticize regulation sharply
China continues to sharply criticize the additional tariffs imposed by the European Union on Chinese electric cars following an adjustment by the EU Commission. The EU's anti-subsidy investigation contradicts the rules of the World Trade Organization and is an act of unfair competition under the guise of fair competition, according to a statement from the Ministry of Commerce in Beijing. Brussels did not fully incorporate China's views in the final decision and insists on its erroneous approach.
Concrete measures needed
During the investigation, Beijing and the automotive industry had presented legal documents and evidence to defend themselves against the EU's inappropriate practices, according to the Ministry of Commerce. Both sides had reportedly discussed the case in more than ten meetings since June. The "wrong approach" of the EU Commission will disrupt the stability of the global supply chain in the industry and harm the interests of European consumers, warned the Chinese authority. The EU should take concrete measures to prevent an escalation in the trade dispute.
The EU Announcement
The EU announced that it would not impose preliminary additional tariffs on Chinese electric vehicles. It was originally planned that, in certain cases, retroactive high countervailing duties of up to 37.6 percent would be applied, because according to EU information, electric vehicles from China benefit, among other things, from market-distorting subsidies. Additionally, the tariff rates were slightly adjusted according to the authority. In most cases, they decreased slightly.
Will punitive tariffs be imposed? Decision by the end of October
According to the EU Commission, Chinese electric vehicles are typically about 20 percent cheaper than models manufactured in the Union. However, according to the Commission, the legal conditions for retroactively imposing tariffs are now not met. Whether the punitive tariffs will actually be imposed is expected to be announced by the end of October. The Commission must have this decision approved by the 27 EU member states.
Actual Subsidies Lower: Tesla Has to Pay Significantly Less Tariff
Meanwhile, an appeal by Tesla resulted in the rate being reduced to nine percent from the previous 21 percent, which is in addition to the previously valid general 10 percent tariff on Chinese electric cars. The calculation is now based on the actual received subsidies, the EU Commission explained according to the Süddeutsche Zeitung, which had been verified on site. Tesla produces the Model 3 in Shanghai and imports it to Europe. Slight downward adjustments were made for the Chinese brands BYD, Geely (Volvo, Polestar, Lync & Co, Zeekr, LEVC) and SAIC (Maxus, MG). BYD plans to start production in Hungary as early as next year and Volvo wants to build the popular compact electric SUV EX30 in Ghent, Belgium, again in the future. Polestar also manufactures its models in the USA to avoid EU tariffs.
German manufacturers Mini and Cupra, which had previously been classified as "uncooperative" because they had not yet exported any electric models from China to Europe at that time, recorded a success as their rate was reduced from the maximum 36.3 percent to 21 percent. According to the new guidelines, manufacturers and governments now have ten more days to submit comments to the Commission. The final tariffs will become effective provided that a qualified majority of 15 out of the 27 EU states, representing 65 percent of the population, does not vote against them. However, this happens very rarely and in the vote on the provisional tariffs, twelve EU states supported the plans, with four votes against and eleven abstentions, including Germany.
Translated automatically from German.
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