On Tuesday October 29, the European Commission adopted the regulation establishing additional customs duties on electric cars imported from China, which are accused of creating unfair competition. Despite Germany’s hostility, Brussels has decided to add to the 10% tax already in place a surcharge of up to 35% on Chinese-made battery vehicles, according to the text of the regulation posted online by the Commission. The decision must be published on Wednesday in the Official Journal of the European Union and enter into force on Thursday. The stated objective is to re-establish fair conditions of competition with manufacturers accused of benefiting from massive public subsidies. This involves defending the European automotive industry and its approximately 14 million jobs against practices deemed unfair identified during a long Commission investigation. Read also | Article reserved for our subscribers Europe confirms the surcharge on Chinese electric cars Read later The French Minister of Economy and Finance, Antoine Armand, considered Tuesday “a crucial decision for the protection and defense of our commercial interests » the announcement from the European Commission, “at a time when our automobile industry needs our support more than ever”. EU surcharges on Chinese electric cars pose “the risk of a large-scale trade conflict”, deplored, for its part, the German automobile industry lobby VDA. These customs duties “are a step backwards for global free trade and therefore for the prosperity, maintenance of jobs and growth of Europe,” denounced the largest federation of automobile manufacturers in the country in a press release. Consultations will continue Beijing denounced “unjust and unreasonable protectionist practices” after the agreement given at the beginning of October by EU member states to the Commission’s proposed surcharges. Until the last moment, the European Commissioner for Trade, Valdis Dombrovskis, continued the dialogue with the Chinese Minister of Trade, Wang Wentao, to try to find a negotiated solution. In vain. Despite everything, both parties agreed to continue consultations. At any time, the surcharges could be removed if an agreement was reached on other means to compensate for the damage identified by the European investigation. China threatens to hit European interests. It has already responded by launching anti-dumping investigations targeting pork, dairy products and wine-based spirits, including cognac, imported from Europe. Enough to make certain members of the EU waver. Germany and four other countries (Hungary, Slovakia, Slovenia, Malta) voted against the Commission’s tax plan, while largely failing to muster the majority needed to reject it. Read also | Article reserved for our subscribers For China, the dilemma of commercial retaliation against the European Union Read later “A fatal signal” The imposition of European customs duties against Chinese electric cars comes in the midst of a crisis in the Volkswagen group, which plans tens of thousands of job cuts and the closure of three factories in Germany. The leading European manufacturer denounced at the beginning of October “a bad approach” by the EU. His compatriot BMW even spoke of “a fatal signal” for the European automobile industry. The customs duties, however, received the support of ten member states including France, Italy and Poland. Twelve others abstained, including Spain and Sweden. But, in France too, the EU’s approach worries economic circles. The Cognac inter-professional association complained of being “abandoned” by the authorities, believing that its sector was “sacrificed” in a commercial conflict which nevertheless does not concern it. Le Monde Buying guides Reusable water bottles The best water bottles to replace disposable bottles Read This Sino-European skirmish is part of a broader context of commercial tensions between the West, with Washington in the lead, and China, accused of anti-competitive practices in several other sectors such as wind turbines or solar panels. The European measures, which are intended to be based on facts and respectful of the rules of the World Trade Organization, however differ from the punitive and more political approach of the Americans. In the United States, President Joe Biden announced on May 14 an increase in customs duties on Chinese electric vehicles to 100%, compared to 25% previously. In Europe, the amount of fines will vary between manufacturers depending on the estimated level of subsidies received. In detail, additional taxes will amount to 7.8% for Tesla cars manufactured in Shanghai, 17% for BYD, 18.8% for Geely and 35.3% for SAIC, according to a final document sent to member countries on September 27. Other groups that cooperated in the European investigation will be charged 20.7% additional taxes, compared to 35.3% for those that did not cooperate. Le Monde with AFP Reuse this content
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