Daily Reports
The EU Commission's investigation into Chinese electric vehicles has concluded that these vehicles benefit from unfair subsidies, leading to economic harm for EU producers. As a result, temporary countervailing duties will be imposed on imports. These duties will vary between 17.4% and 38.1%, depending on the level of cooperation from the Chinese producers involved. This move is part of the EU’s strategy to ensure fair competition in the market.
The European Commission's investigation started in October and must be finalized within 13 months. Provisional countervailing duties will be published within nine months, with definitive measures coming four months after provisional duties. Manufacturers in China, including Tesla, may receive individually calculated duty rates at the final stage. Companies not in the initial sample can request an accelerated review post-final measures.
Provisional duties will be made known to all stakeholders, including Union producers, importers, and exporters. The Vice President of the European Commission, Valdis Dombrovskis, emphasized that the aim is not to shut Chinese electric vehicles out of the European market but to maintain fair competition. Imposes duties aim to protect EU jobs, with 2.5 million direct and 10.3 million indirect jobs at stake due to subsidized competition.
China has strongly opposed the EU's measures. The Chinese Ministry of Commerce accused the EU of ignoring WTO rules and China's open-market advantages. They expressed concern that these actions would harm global automotive industry stability and supply chains, urging the EU to correct its practices. The Chinese Chamber of Commerce at the EU echoed similar concerns, predicting intensified trade frictions and adverse impacts on economic relations.
Beijing views the EU's duties as harmful to European interests and a form of protectionism. They argue that the charges undermine free trade principles and threaten the stability of global automobile production. German Transport Minister Volker Wissing and Italy’s Minister of Business Adolfo Urso provided differing perspectives, with Wissing criticizing the approach and Urso supporting protecting European automotive industries.
- The European automotive industry faces challenges due to the energy transition and competition from China, a global leader in electric vehicles. The tension between Beijing and Western countries has escalated, with significant investments in energy transition technologies and allegations of unfair competition by China.
- Ursula von der Leyen, President of the European Commission, announced targeted actions amid ongoing trade tensions. Europe has seen a surge in imports of Chinese electric vehicles, with numbers rising from 57,000 in 2020 to 437,000 in 2023. The value of imports also increased substantially, highlighting the growing market influence of Chinese electric vehicles in the EU.
- China's response to EU tariffs underscores its readiness to take all necessary measures to protect its interests. The implications for European consumers and the EU’s green transformation efforts are significant, as any disruptions in the automotive sector could impact broader climate change collaboration and economic stability.
