Electric cars: The EU wants to impose a tax of up to 36% for five years on Chinese production

by time news

2024-08-21 14:58:32

Bad news for global electric car manufacturer, China’s BYD. A manufacturer trying to export, and specifically to France, will have to face a new submission from the European Union: of 36% tax for five years on imports of Chinese electric cars … except for Beijing find another solution, the European Commission announced on Tuesday.

These customs duties, which are in addition to the 10% taxes already applied to cars manufactured in China, will be in effect by the end of October, under the approval of 27, unless Another suggestion was made by Beijing. The European Union says it is “open” to discussion and any alternative solution to avoid these taxes has been criticized by some member states, including Germany and Sweden.

Block taxes

The council also announced that it will not accept the temporary tax, which comes into force on July 5. Meanwhile, they will continue to pay them but they will be blocked in the bank account before they return. The new taxes will definitely be accepted, unless the majority of Member States (15 countries representing 65% of the European population) oppose them, at the end of October.

The Chinese Chamber of Commerce, solemnly, protested this Tuesday, the “protectionist” and “unfair” trade practices of Brussels, “showing its deep dissatisfaction and its firm opposition to the protectionist approach of the European Commission”, it confirmed in a press release, also warning of the risk of “the launch of trade tensions between the EU and China”.

Beijing is ahead of Brussels

These taxes concern most Chinese manufacturers: the EU will, for example, impose tariffs of 17% on the Chinese manufacturer BYD, instead of the 17.4% provided for by the supply tax decided last month, from 19.3% to Geely, against 19.9%, and 36.3% at SAIC against 37.6% in July: all these changes were decided after discussion with the companies involved and taking into account some of their requests , described for his part a European official, in a state of anonymity.

The champion of gasoline and diesel engines, the European car industry fears that its factories will disappear if it fails to allow the announced movement of Chinese electric models. In the EU, the market is expanding, ahead of the ban in 2035 on the sale of new combustion vehicles. However, Chinese electric vehicles represent 22% of the European market, compared to 3% three years ago, according to company statistics. Kannada brands take 8% market share.

In contrast, the tax on American manufacturer Tesla is significantly lower than the one proposed by Brussels for Chinese electric cars, as Elon Musk’s company has received few subsidies in China, the European Commission said.

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