It appears the European Union is softening its stance against Chinese-built electric vehicles, lowering tariffs for certain brands, according to a Reuters source. The European Commission had slapped additional tariffs on EVs imported from the Middle Kingdom in July, alleging unfair subsidies its counterpart issued to its own carmakers.
One of the biggest beneficiaries was Tesla – which imports some cars from Shanghai, despite building some in Berlin. Its rate was slashed from 20.8% initially to 9% last month; reportedly, that number has since been reduced further to just 7.8%.
The company is classified as cooperating with the EU’s investigation into the said incentives, and last month the commission said it had verified Tesla’s claim that it received lower incentives than competing Chinese brands. Reuters has yet to receive confirmation of the lower tariff from either the EC or Tesla.
Chinese brands that have cooperated with the investigation have also received lower tariffs, the report stated. Geely’s rate is apparently down to 18.8%, a reduction from 19.3% last month and 19.9% in July. On the other hand, BYD’s rate is unchanged this month, but its current 17% rate already represents a reduction from the 17.4% it was handed back in July. Other “cooperating companies” like Chery, GWM and Nio, as well as firms with joint ventures with European carmakers, get the standard rate – now reduced to 20.7%.
Even those that have been classified as not cooperating, such as MG owner SAIC, have gotten their rates reduced. The maximum punitive rate is reportedly now 35.3%, down from 36.3% last month and 37.6% initially – itself a decrease from the first proposal of 38.1%. These rates, which apply on top of the standard 10% tariff for EVs, will be subject to a vote by the 27 member states, the publication stated.
The tariffs have prompted China to come to the negotiating table to address economic and trade disputes, Reuters said in another report. The commerce ministry stated that its minister Li Fei indicated the country’s willingness to engage in dialogue and consultations during a meeting with the EC’s director general for trade in Brussels on Monday.
The ministry added that the issue of countering subsidies with tariffs was “complex” and presented significant challenges in reaching an agreement. “China is willing to continue to work closely with the European side to reach a solution that meets the common interests of both sides and is in line with WTO [World Trade Organisation] rules, so as to promote the healthy and stable development of China-EU economic and trade relations,” it said.
China’s openness to negotiate is just the latest in its thawing relationship with the EU. Just last week, the nation sought to ease tensions by refraining from imposing provisional anti-dumping measures on European-made brandy.
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They reduced their tariff because China retaliated to dairy imports from EU. Their dairy industries and farmers will go bust.
Why Chinese EV is cheap? It is because the supply chain is cheap and lower labour cost compare to Western countries. Imagine in German operator annual salary is about USD 40k while China factory operator annual salary is less than USD 10k. And also China often manufacture in ultra huge volume to bring down the cost.
Some Western politician cited Chinese EV is heavily subsidised by Chinese gov. BYD first 7 months sold 270k unit EV and targeted 500k annually. Imagine if Chinese gov subsidise USD 5k a car, 500k units will be USD 2.5B. This is only BYD alone not yet include other Chinese EV brands. Isn’t this is ridiculous that Chinese gov wanted to subsidised to “foreigner” instead of saving the money to help their own citizens.
Another thing is not only Chinese EV is cheap, Tesla is an American company and they are selling Model 3 & Y cheaper than most Western car brands. Mean American gov also heavily subsidise on Tesla? Bear in mind that American salary is few times higher than Chinese. By logic they should sell much higher than Chinese EV instead of slightly expensive as of now.
Lol Reuter’s spinning. EU softened China’s EV tariff only after China threatened retaliation e.g. dairy products, liquor etc. USA and its allies are bullies, and Global South should stand united to push back on them.
because they realise china car companies make more cars in europe than the european carmakers