The European Union has slightly lowered its proposed tariffs on Chinese imports of electric cars, according to Bloomberg 26, citing sources familiar with the matter.
According to the report, the European Commission announced on 12 December that it would impose tariffs on electric car imports from China, with companies that cooperated with the investigation being slapped with a 21 per cent tariff and those that did not face a 38.1 per cent tariff. However, after obtaining more information from the affected companies, the EU slightly adjusted the imposed rates: BYD kept its 17.4 per cent tariff unchanged, the tariffs imposed on Geely cars were lowered from 20 per cent to 19.9 per cent, and SAIC’s tariffs were lowered from 38.1 per cent to 37.6 per cent. Tariffs of 20.8 per cent will be added to other Chinese companies that cooperate with the investigation but are not sampled, and those that do not will face tariffs of 37.6 per cent.
China’s Ministry of Commerce has announced on the 22nd that China and the European Union will start consultations on the EU’s countervailing subsidy investigation case against China’s electric vehicles. At the regular press conference on the 27th, when asked whether the China-EU electric vehicle consultations would take an approach similar to that of the China-EU photovoltaic dispute in 2013, He Yadong, spokesman for China’s Ministry of Commerce, said that, at present, the working teams of the two sides have maintained close communication and pushed forward the consultation work in a tight manner. I hope that the European side and the Chinese side to move in the same direction, as soon as possible to promote the consultation to make positive progress, to reach a mutually acceptable solution, in order to avoid the escalation of trade friction on the Sino-European economic and trade relations caused by the adverse impact.
The EU’s proposed tariffs on Chinese electric cars continue to raise questions. According to the German weekly magazine Focus on the 26th, Konemann, chairwoman of the German Economic Union for Small and Medium-sized Enterprises, criticized the EU for threatening to impose punitive tariffs on Chinese electric cars and for failing to dialogue with businesses or consult member states beforehand. “There is a risk of escalation (of the trade dispute) here,” she said, adding that “whoever sows the wind will reap the storm.” In a trade conflict, China could also impose penalties and tariffs on EU goods. “Ultimately, this would affect the economy and consumers – and also increase inflation.” She said.
China has now opened an anti-dumping investigation against imports of relevant pork and pig by-products originating from the EU. He Yadong also revealed at a press conference on 27 May that the Ministry of Commerce is reviewing, in accordance with the law, the application submitted by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCMEP) on behalf of the industry to conduct a barrier investigation into the EU’s Foreign Subsidies Regulation.
