The European Commission has concluded that China’s value chain benefits from unfair subsidies.
The European Commission (EC) announced the introduction of countervailing duties on imports of electric vehicles from China, and the measures were taken due to the disruption of competitive conditions in the market as a result of significant subsidies of the government for industry in the PRC. The EC website reports this.
“Today, nine months after launching an anti-subsidy investigation, the European Commission has imposed provisional countervailing duties on imports of battery electric vehicles (BEV) from China. Based on the investigation, it was concluded of the European Commission that China’s value chain benefits from unfair subsidies, which entails threats of economic losses for AEA producers in the EU,” the report said.
The European Commission states that the EU and China have intensified their bilateral consultations in this area in recent weeks and are continuing them at a technical level to find solutions that comply with World Trade rules. Organization and taking into account the concerns of the EU.
Note that the European Commission will apply duties for Chinese electric cars BYD in the amount of 17.4%, Geely – 19.9%, SAIC – 37.6%. Products from other electric vehicle manufacturers that contributed to the investigation but did not provide the required samples will be subject to an average duty of 20.8%. The duty rate for products from other Chinese companies that refused to cooperate during the investigation will be 37.6%.
Initial import duties on Chinese electric cars will be applied from July 5 for up to four months.
During this time, the decision on the continued application of EU tariffs on imports from China must be agreed upon by the EU states through a written procedure and a simple majority.
The EU will then apply some tariffs on imports of electric vehicles from China for five years.
We remind you that it was previously announced that the EU will introduce additional duties on electric vehicles from China at the level of 38.1% in July, which will lead to an increase in the value of vehicle sales in Europe for Chinese company. BYD to Tesla.
China has reacted to EU plans to introduce tariffs on electric cars
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.