Most EU member states are in favor of much higher import duties for Chinese electric cars. The duties are said to be necessary because of the unfair competition that would arise because China subsidizes its own EV manufacturers. The Netherlands, among others, is in favor of the punitive duties, Germany is one of the few opponents.
This was reported by Brussels sources multiple mediaafter diplomats from EU member states have consulted on the issue. Later this year, the member states will decide on definitive measures against China. The European Commission proposed the additional import duties, which could amount to 38 percent, earlier this month. This levy is on top of the current 10 percent. The measure is a response to unfair competition from China because the Chinese government gives its own manufacturers a lot of subsidies.
The level of the European EV levies is not yet final. The European Commission and the Chinese government are still negotiating a possible reduction of the Chinese subsidies. If Beijing refuses, Brussels wants the import duty to apply for five years. The proposal can be blocked if a large majority of EU countries are against.
Germans are against
Germany opposes the import duties on Chinese EVs, as German brands such as Volkswagen, BMW and Mercedes-Benz fear the consequences for the sales of their electric cars in China, which is a large market. But it seems that most member states are in favor of the duty. A final decision is expected around November.
The Chinese government is angry about the European plan, and the Chinese Ministry of Commerce recently launched an investigation into whether the EU’s EV tariffs and other measures against Chinese sectors such as solar panels, trains and wind power violate free trade.
New Turkish factory for BYD
The rates of the punitive levy vary per car brand and range from 17 to 38 percent. Some Chinese car brands are already taking the higher levies into account. For example, BYD made a deal with the Turkish government to open a large car factory in that country, in order to circumvent the EU levies. The construction of the BYD factory is said to involve around 1 billion dollars. The Turkish factory gives BYD relatively easy access to the EU, with which Turkey has an economic partnership.
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Source: www.bright.nl
