July 5, 2024
2 mins read

EU slaps heavy tariffs on Chinese EV producers

The additional taxes will be imposed on China-made Battery Electric Vehicles (BEVs) starting July 5, Euro News reported on Thursday….reports Asian Lite News

The European Commission (EC), in a bid to counter China’s attempts to capture the European markets, imposed additional tariffs to maintain healthy competition in the EU’s electric vehicle market.

The additional taxes will be imposed on China-made Battery Electric Vehicles (BEVs) starting July 5, Euro News reported on Thursday.

The decision to impose the taxes was taken after an extensive nine-month investigation conducted by the EC, which concluded, “The EV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers.”

Additionally, the investigation also examined possible consequences and impacts of the measures on importers, users, and consumers of BEVs in the EU.

“Public money was detected everywhere, from the mining of raw materials needed to churn out batteries to the shipping services employed to bring the finished products to Europe’s shores,” Euro News quoted a European Commission official as saying.

The report also mentioned that the huge scale of subsidies allowed by the Chinese authorities to their BEV manufacturers enables them to sell their Chinese EVs at significantly lower prices compared to EVs made in Europe.

The European news organization claimed that these lower prices have triggered significant differences in the market share of China-supplied BEVs, with the difference being noticeable from 3.9 per cent in 2020 to 25 per cent in 2023, data released by the EC stated.

This cost difference in BEVs from both regions poses a threat to the EU economy, affecting approximately 12 million jobs directly and indirectly, causing major losses to European countries. Quoting the EC statement, the Euro News report stated that the taxes will be imposed on top of the existing 10 percent tax rates for EVs in the EU.

The EU imposed these taxes based on the parent company, annual turnover, and suspected amount of subsidies received by China.

According to the EC report quoted by Euro News, the EU has imposed a 17.4 per cent duty on vehicles by BYD, 19.9 per cent on vehicles by Geely, and 37.6 per cent on vehicles made by SAIC.

The EC report further mentioned that other BEV producers in China, which cooperated in the investigation but have not been sampled, would be subject to a weighted average duty of 21 per cent. All other BEV producers in China which did not cooperate in the investigation would be subject to a residual duty of 38.1 per cent. (ANI)

ALSO READ: UAE, EU step up efforts to combat financial crimes

Previous Story

6 bridges collapse in Bihar over last two days

Next Story

Closely monitoring Chinese seizure of Taiwan fishing boat: US

Latest from -Top News

Top Indian Officials Head to Washington

The visit, likely next week, follows US President Trump’s claims that his administration helped broker the recent India-Pakistan ceasefire….reports Asian Lite News Top sources revealed on Sunday that Foreign Secretary Vikram Misri

India, Canada Discuss Enhancing Diplomatic Relations

Canada’s new Prime Minister Mark Carney is pushing for deepening economic cooperation with India….reports Asian Lite News External Affairs Minister S. Jaishankar held his first phone call with Canadian counterpart Anita Anand,

Ramaphosa gains from US showdown

South African President’s conduct with Trump reminded South Africans of his diplomatic pedigree, and of his importance to the country’s rules-based order South Africa’s President Cyril Ramaphosa and his delegation went to
Go toTop

Don't Miss

No dominant force other than Xi in new Chinese leadership

After being elected to China’s third term as president, Xi

Death toll mounts to 93 in Sichuan quake

Among the missing people, nine were in Luding, and 16