the member states of the European Union give their agreement

Despite opposition from several states, including Germany which fears a trade war with Beijing, member countries of the European Union (EU) have agreed to the imposition of customs duties on electric cars imported from China , Friday October 4, late morning. The European Commission now has a free hand to implement countervailing customs duties of up to 35% on Chinese-made battery vehicles, in addition to the already existing 10% tax. She proposed in June to surcharge Chinese electric vehicles imported into the EU, following an investigation into unfair practices by Beijing in this sector. The 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 The European Union ready to raise its taxes on Chinese electric vehicles Add to your selections Germany fears a “trade war” The representatives of the EU member countries were, as expected, very divided during the vote.
The tax project received the support of ten member states including France, Italy and Poland. Twelve others abstained, including Spain and Sweden, which had nevertheless expressed their hostility. Germany, along with four other countries (Hungary, Slovakia, Slovenia, Malta) spoke out against, but largely failed to muster the majority needed to overturn the Commission’s decision, according to results sent to Agence France- Press by European diplomats. These divisions of the Twenty-Seven did not make it possible to bring together the necessary qualified majority (at least fifteen Member States representing 65% of the EU population) to formally approve the surcharges. But, in the absence of a clear vote in one direction or the other, the European executive will be able, as it intends, to implement these countervailing customs duties which will also apply to the models of non-Chinese groups assembled in China. The Commission “must not trigger a trade war” despite this vote, German Finance Minister Christian Lindner reacted in a press release, calling for “a negotiated solution” with Beijing. The German flagships of the automobile industry, BMW, Mercedes and Volkswagen, strongly established in the world’s largest market, fear paying the price of retaliatory measures. Volkswagen also reacted on Friday by denouncing a “bad approach” from the EU. During a visit to China in September, Spanish Prime Minister Pedro Sanchez, initially in favor of customs duties, called on the EU to “review” its position. Read also | Article reserved for our subscribers The European Union opens a new front in its fight against Chinese protectionism Add to your selections Continuing dialogue with Beijing The amount of these taxes that the EU will impose varies according to the manufacturer depending on the estimated level of grants received. In detail, additional taxes will amount to 7.8% for Tesla, 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. For its part, China denounces a “protectionist” approach. It has already responded by launching anti-dumping investigations targeting pork, dairy products and wine-based spirits imported from Europe, including cognac. However, a dialogue continues between European Commissioner Valdis Dombrovskis and Chinese Minister of Commerce, Wang Wentao, to try to find a negotiated solution to the conflict. At any time, the surcharges could be eliminated if such a solution made it possible to compensate for the damage identified by the European investigation. This skirmish is part of a broader context of commercial tensions between the West, led by Washington, and China, accused of destroying competition in several other sectors such as wind turbines, solar panels and even batteries. Le Monde Buying guides Reusable water bottles The best water bottles to replace disposable bottles Read The European measures, which are intended to be based on facts and respectful of the rules of the World Trade Organization (WTO), however differ from the punitive and more political Americans. In a press release published on Friday, the Commission specified that it would continue its negotiations with China in order to explore an alternative solution fully compatible with WTO rules. 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. Read also | Article reserved for our subscribers China threatens Europe with commercial reprisals, before the European decision on Chinese electric vehicles Add to your selections Le Monde with AFP Reuse this content



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