New EU duties against Chinese electric cars: genius or boomerang?
The direct and indirect effects of the new duties decided by the European Commission against Chinese electric cars. The in-depth analysis of the European Mattinale
WHAT BRUSSELS DECIDED AGAINST CHINESE ELECTRIC CARS
Record duties against imports of Chinese electric vehicles – The Commission yesterday imposed record anti-subsidy duties against imports of Chinese battery electric vehicles, with a rate that can reach almost 50 percent for some manufacturers, including Europeans who they decided to relocate to China. After a nine-month investigation, the Commission found that China provides subsidies across the entire value chain of electric vehicles: from the lithium mine to ports in the EU. Help is provided at every level: national, provincial, local authorities, banks and other financial institutions. There are not only traditional direct subsidies or tax discounts. Beijing has set up a creative finance system that includes green bonds and securitisations. China's central bank offers preferential refinancing rates to banks that support green tech. The duties imposed on individual manufacturers tested in the investigation correspond to the level of subsidies they benefit from and how much they cooperated with Brussels: 17.4 percent for BYD, 20.0 percent for Geely, 38.1 percent for SAIC. Another 21 producers will be charged 21 percent. Those who did not cooperate will be imposed a duty of 38.1 percent. The duties are additional to the current ones of 10 percent and will provisionally come into force on July 4. Their final adoption is scheduled for November.
VON DER LEYEN SUPPORTS THE FRENCH THESE ON CHINA, WHILE GERMANY…
Von der Leyen favors France and risks a trade war with China – On the tariffs on Chinese electric cars, as she seeks a second mandate, for once Ursula von der Leyen has chosen France over her Germany. Berlin has campaigned intensely against tariff measures out of fear of Chinese reprisals and to protect its manufacturers producing in China. China's Ministry of Commerce said it was "highly concerned and strongly dissatisfied" with the Commission's decision and warned that it would "take all necessary measures" to protect the interests of its businesses. “The European Commission politicizes and weaponizes economic and trade issues,” the ministry said. “This is a pure protectionist act.” Officially the Commission is ready for dialogue, but no one in Brussels believes that Beijing will make concessions. “The Chinese government has so far issued many threats of trade reprisals, but has not fully cooperated in the investigation,” a Commission source told us.
THE INDIRECT EFFECTS OF THE NEW CHINESE ANTI-AUTO DUTIES
Why the deadlines of the Green deal could be called into question by tariffs on China – The imposition of tariffs on Chinese electric cars will have a double impact on consumers, discouraging the transition towards electric mobility. Not only will Chinese electric cars cost more, but there will be less pressure on European manufacturers to lower their prices, which are currently out of reach for most citizens. The Commission has chosen to protect industry, jobs (2.5 million direct and 10.3 million indirect) and investments in the EU. “It is not sustainable to have a climate transition without an industrial base for green tech in the European Union,” a Commission official told us. Under these conditions, will it be possible for von der Leyen to confirm the 2035 date for the end of the sale of cars with combustion engines? His CDU and the European People's Party have already asked to call the date into question, as a condition for confirmation as president of the Commission.
(Excerpt from the European Journal )
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/nuovi-dazi-ue-anti-auto-elettriche-cinesi-genialata-o-boomerang/ on Thu, 13 Jun 2024 05:44:05 +0000.