According to a report by Automotive News, the European Union (EU) and China have agreed to resolve disputes over the former’s decision to impose additional tariffs on imported electric vehicles (EVs) made in China.
A spokesperson for China’s ministry of commerce said Chinese EV makers have pledged to sell their EVs in the EU above minimum prices. This agreement was reached after Wang Wentao, China’s minister of commerce, held discussions with Valdis Dombrovskis, the European Commission’s (EC) executive vice-president and commissioner for trade, in Brussels last week. Previously, the commission rejected the idea, as reported by Reuters.
“Technical teams on both sides are now negotiating on a flexible price commitment plan and making every effort to reach a consensus on the solution framework before the final ruling by the EU on EV tariffs,” the spokesperson said.
In June this year, the EC proposed additional tariffs of up to 38.1% on EVs made in China and imported into the EU. Several Chinese EV makers would then start negotiations which led to adjustments on tariffs imposed, with lower rates being applied to EVs made by BYD, Geely and SAIC.
The EC is due to vote in October on whether to slap additional duties on China-made EVs on top of its standard 10% import tariff, with a finalised decision expected to be announced by the end of the same month.
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Easy….agreed on lets say min 50k selling price then give rebate or discount all year round.
So EU learnt how to adopt car making protectionism the same they had condemn Msia for protecting P1/P2 all these time. Mahathir is vindicated at last!
Just like what we did on the RM100k lower price limit, now they follow us. It has proven with that measure in place, our local manufacturers are protected from the impact.
Eruopeans have been taken for a ride by their own leaders. Thanks to the EU and their protectionism of big, greedy corporations, people will pay more for a car. When these legacy automakers can’t compete on price and technology, they cry to the politicians to help them.
EU consumer is the biggest Loser….free market democracy my bum…hahahaha now both EU & US have become close economy.
The poles are shifting. Those who used to tout the free market are becoming protectionist in the face of technological/process stagnation/regression. Protectionism is seldom the solution as witnessed by P1s almost collapse before the Geely takeover.