2024-08-21 07:15:44
While there is already a tax for cars manufactured in China and imported to Europe, at the rate of 10%, customs duties may also be added at the end of October. To hope to avoid it, the Central Government must reach an agreement with the European Union (EU) then. The latter confirmed this Tuesday, August 20 that it is willing to listen to another solution from Beijing.
The ax threatens to fall for Chinese vehicles. By the end of October, if nothing changes, customs duties will be added arbitrarily to these imports. While the electricity market is struggling to find a place on the European continent, this new financial barrier could deal a fatal blow to imports.
As AFP points out, for additional cultural activities to be added, however, the approval of the Seventh is required. The European Commission stated in a press release that these new customs duties will replace the provision duties established from the beginning of July, which may rise to 38%.
These new rates, criticized by some member countries including Germany and Sweden, caused great excitement on the Chinese side. The country said it was “forced” against the project and called on the EU to find “appropriate solutions to avoid the continuation of trade conflicts”. The Council, desiring at all costs to avoid conflict, announced at the same time that it would not accept, all things considered, the provisional taxes which had been effected on July 5. Although these were still paid, they blocked in a specific bank account which will allow to return this money. It’s just another way to swallow the drug.
These power plays are the result of growing trade tensions between the West and China. The latter are accused of destroying competition in various sectors including wind energy, solar energy and even battery production.
Fearing that its factories will disappear, the European car industry has asked the Commission to find a common ground to protect the sector of the continent. In this area, the Old Continent stands out in gasoline and diesel engines, while China has taken the lead with electric models, making long-term investments in batteries.
Electric models from China already manage to take 22% of the European market. A meteoric rise when we knew it was only 3% three years ago. In contrast, Tesla of the United States, whose models are made in China, will see a reduced tax of 9% applied for five years. The European Commission justified this situation by saying that the manufacturer receives few subsidies in China.
As a reminder, the automotive industry employs 14.6 million people in the Union. As if in a struggle, the organization seeks to juggle between the satisfaction of its own sector and the risk represented by the conflict with the Chinese nation, then its second largest economic partner. For the United States, the trick may have appeared unproblematic, announcing in mid-May 100% customs duties on Chinese electric vehicles entering the country.
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