The European Commission is threathening legal action against China for discrimination against European car companies, with their latest decision to revise tax tariffs for car parts which indirectly forces companies to source components from Chinese producers.
China has reclassified car parts as ‘fully finished cars’, something like CBU, which carries a 34% tax, double from the previous rate. Because parts are expensive to bring in now, in order to be economically competitive manufacturers have to source parts from Chinese producers to avoid the high tax.
The problem is foreign car manufacturers are not allowed to setup their own businesses in China. They must partner up with an existing Chinese company, forced to accept minority shareholding. Allowing a Chinese company access to all your designs would only result in one thing, vehicle piracy!
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AI-generated Summary ✨
Comments express strong opinions criticizing China's extensive copying and piracy in the automotive industry, with many calling it theft and illegal. Some acknowledge that China learns from others, including Japan and Malaysia, but highlight concerns over quality, safety, and ethical issues. There are comparisons to Malaysia’s own copying practices and worries about the implications for local industries and global reputation. Overall, sentiments lean toward disapproval of China's blatant imitation but recognize China's rapid development and market advantages.