A decision by the EU to impose an additional tariff on top of the already existing 10 percent tariff on electric cars produced in China is causing outrage among Chinese car manufacturers. On Tuesday, the EU published a draft of the conclusions of an investigation into possible Chinese state aid to the country's electric car industry.
The conclusions have confirmed that the EU is providing anti-competitive state aid, and is therefore maintaining the additional tariffs of up to 36.3 percent. However, there have been some shifts in how severely the different car brands are affected.
Tesla, among other things, will get away with an additional tariff of just 9 percent on cars exported from the company's Chinese factories to Europe. This is because the EU Commission finds it proven that the company receives less Chinese support than many other manufacturers. In contrast, the Chinese car manufacturer BYD will in future be faced with an additional tariff of 17 percent. on cars exported to Europe.
The EU Commission has called on the Chinese government to enter into negotiations that could reduce the punitive duties if state aid is reduced.
Ursula von der Leyen has previously stated that the EU's trade deficit with China is completely unreasonably high. In January, she stated that the EU's trade deficit with China is approaching 400 billion euros. Therefore, the EU Commission has started looking into unreasonable state aid.
This has been done, among other things, with reference to the fact that Chinese companies have effectively wiped out the solar cell industry in Europe. The fear is that similar situations could also unfold in the wind industry, where Chinese manufacturers also offer cheap turbines and attractive loan conditions.
Car manufacturers: Tariffs harm the green transition
However, the Chinese car manufacturers' association warns that the punitive tariffs are detrimental to Chinese companies' desire to invest in Europe. This will in turn mean that the development of the European car industry and the green transition will be set back, and it will also affect the prospects for more new jobs.
As a kind of response to the European punitive tariffs, China has initiated an investigation into some of the dairy products that the Chinese import from the EU.
The investigation will also clarify whether European dairies are receiving state aid that distorts competition. The Chinese announced a similar investigation into imported pork a month ago.
/ritzau/
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