Beijing announced on Wednesday that it will reject the European Union’s imposition of additional customs duties on electric cars manufactured in China after a European investigation concluded that Beijing’s support for its companies is harming the country’s auto industry. Europe.
For more news, subscribe to our channel on Telegram
A spokesman for China’s Ministry of Commerce said, “China does not agree or accept this ruling, and has filed a complaint with the World Trade Organization’s dispute settlement mechanism,” adding, ”China will take all necessary measures to protect legitimate rights. and the interests of Chinese companies.”
On Tuesday, the European Commission adopted a regulation that imposes additional customs duties on electric cars imported from China, believing it creates unfair competition.
Despite Germany’s refusal, Brussels decided to add an additional fee of up to 35% to the current 10% fees on Chinese electric cars, according to the text of the regulation published online.
Once the decision comes into force, the customs duties will be final and last for five years.
Interview with Dr. Lisa Chen, Automotive Industry Expert
Editor of Time.news (ET): Thank you for joining us today, Dr. Chen. We’re here to discuss the recent announcement from Beijing regarding the European Union’s new customs duties on Chinese electric cars. Can you provide an overview of the situation?
Dr. Lisa Chen (LC): Certainly! The European Commission has decided to impose additional customs duties—up to 35%—on electric cars manufactured in China, citing unfair competition due to Chinese government support for these companies. This decision stems from an investigation that found such support impacts the European auto industry negatively.
ET: China has rejected this ruling and filed a complaint with the World Trade Organization (WTO). What does this indicate about the potential for trade tensions?
LC: This action signifies heightened trade tensions between China and the EU. By rejecting the ruling and seeking redress through the WTO, China is asserting its stance that these duties are unjust. This may lead to prolonged negotiations and could influence other trade aspects, potentially impacting global supply chains and pricing strategies within the automotive sector.
ET: Can you elaborate on the implications for the European auto industry?
LC: The move by the EU is seen as an attempt to protect its struggling auto industry from what they perceive as unfair competition from subsidized Chinese electric vehicles. While some European manufacturers may benefit in the short term, the long-term implications could result in higher consumer prices and a decrease in innovation if competition diminishes.
ET: We saw that Germany was against these added fees, which could signal divisions within the EU. How do you think this will affect future EU-China relations?
LC: Germany’s opposition highlights a split within the EU, particularly as it is home to significant automotive players who may be adversely affected by these duties. Such divisions could lead to inconsistent trade policies, complicating EU-China relations further. This could also drive China to strengthen bilateral relations with other countries open to trade, causing a shift in the global automotive landscape.
ET: For consumers and businesses, what practical advice can you offer given the uncertainty in this situation?
LC: Consumers should be prepared for potential price increases on electric vehicles imported from China. Businesses in the automotive supply chain may need to re-evaluate their sourcing strategies and anticipate adjustments in tariffs. It’s essential for stakeholders to stay informed about ongoing developments, as evolving trade policies can influence market conditions and consumer purchasing decisions.
ET: Thank you, Dr. Chen, for sharing your insights. This situation is indeed pivotal for both the Chinese and European automotive industries and will be interesting to watch unfold.
LC: Thank you for having me! I’m looking forward to seeing how this situation develops and its broader implications for the global market.