EU moves toward tariffs on Chinese EVs
European probe into whether Chinese cars are receiving unfair subsidies to keep prices low takes new turnThe European Commission will begin customs registration of electric cars built in China from today, March 7, as an investigation continues into whether the EVs are receiving unfair subsidies from the Chinese government that puts European car-makers at a disadvantage.
Under the ongoing investigation, which was launched last year, the Commission has reportedly found evidence of a “direct transfer of funds” and “other mechanisms” designed to lower the price of Chinese-built EVs sold in the region.
The probe is expected to conclude later this year, when the EU will decide whether to retaliate with punitive tariffs on EVs produced in China.
However, provisional duties could be imposed as early as July and retroactive tariffs applied as well.
In a report published this week, the Commission said it was already in possession of “sufficient evidence” to support claims that Chinese EVs were receiving subsidies to keep the retail price low.
Chinese EV imports into Europe have increased 14 per cent year-on-year since the investigation was launched back in October.
Chinese brands are fast making inroads in Europe, particularly with affordable EVs, much to the ire of European brands such as Volkswagen, Renault and Stellantis-owned Peugeot, Citroen, Opel and Fiat.
The tariffs would be designed to boost sales of European EVs and maintain sufficient production levels that, if reduced, could “negatively affect employment and the overall production of union producers”.
Similar recent probes found the Chinese government already subsidises the e-bike industry and supply of fibre-optic cables within the region, with subsidy margins ranging from four to 17 per cent.
Despite claiming it has evidence, the European Commission has not yet revealed specific examples or listed which car-makers have received payouts from the Chinese government.
Images: Getty Images
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Related: Chinese EV pricing under investigation in Europe
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