EU tariffs on electrical cars produced in China began to apply at midnight from Tuesday to Wednesday and will scope from 7.8 to 35.3 percent. The reason for their imposition is the subsidy of production by the Beijing authorities. The Regulation on customs duties on imports of e-aut from China on Tuesday evening was entered in the authoritative diary of the EU.
Customs duties will not cover imported e-cars from China which are already on the Union market. For respective months now, the media has been informing that a large number of these have been behind in EU ports.
Following an investigation initiated in October 2023, the European Commission concluded that China is financing the production of electrical cars so that it can sale them at artificially low prices. The subsidy covers the full production chain – from battery to direct grants to producers.
This raised concerns in the Union that the European automotive manufacture would not be able to cope with unfair competition from China, as had previously been the case with another industries, specified as producers of photovoltaic panels. Currently, for example, 90% of the panels sold in the EU come from the mediate State. The weakening of the European automotive manufacture would weaken the competitiveness of the economy and entail massive redundancies.
EU duties on "electrics" will be between 7.8% and 35.3% and will be imposed in addition to the EU's already existing 10% duties on imported cars. The amount of the charge depends on the degree to which the company was subsidised and whether it cooperated with the EC in the investigation. Should an increase or simplification of subsidies be found, the amount of the duties may be amended accordingly.
Fees will should be paid not only by Chinese companies, but besides by non-Chinese companies that produce in the Central State – for example, American Tesla is to be subject to a work of 7.8%.
For China, access to the European marketplace is crucial. Europe is the main recipient of Chinese e-aut (around 40% of its exports from the mediate East) and 1 of the last large, rich markets that remains comparatively open. In fresh months, the USA and Canada have announced the introduction of duties of 100% on imports of electrical cars from China and Turkey of 40%.
The issue of customs has caused considerable controversy in the EU. The fee opponents highlighted, among others, the hazard of retaliation from Beijing. Hungarian Prime Minister Viktor Orban even warned against the "economic cold war" between the Community and China.
Finally, on 4 October, EU associate States agreed in the vote to introduce duties. Germany, Hungary, Malta, Slovenia and Slovakia were opposed. abstained: Belgium, the Czech Republic, Greece, Spain, Croatia, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden and Finland. The another EU countries were in favour.
The European Commission has announced that it will proceed negotiations with Beijing to find an alternate solution.
The EU's position towards Beijing has intensified over the last 5 years. Brussels sees China as a possible partner on any issues, but besides as a competitor and systemic rival in others.
Source: PAP
