The EU's proposal to impose countervailing duties on Chinese electric vehicles has been approved
According to CCTV news, on October 4, local time, the European Union held a vote on whether to impose a five-year countervailing duty on Chinese electric vehicles. According to a statement released by the European Commission, the European Commission's proposal to impose tariffs on imported pure electric vehicles from China in the vote received the necessary support from EU member states.
After the EU's above countervailing duty proposal was passed, many parties have spoken out on this. So far, China's Ministry of Commerce, the European Union China Chamber of Commerce, the China Council for the Promotion of International Trade and other parties have expressed "firm opposition." In terms of car companies, Geely Automobile, Mercedes-Benz, BMW Group, etc., also made their position clear, expressing "opposition", "disappointment", "strong dissatisfaction" and "wrong" to the European Commission's move.
"Resolutely oppose the EU's imposition of additional countervailing duties on Chinese electric vehicles"
According to Xinhuanet, on October 4, the spokesperson of China's Ministry of Commerce answered the reporter's question when the EU voted to pass the final draft of the anti-subsidy case of electric vehicles: "China's position on the EU's anti-subsidy case against China's electric vehicles is consistent and clear. China firmly opposes the EU's unfair, non-compliant and unreasonable protectionist practices in this case, and resolutely opposes the EU's additional anti-subsidy duties on Chinese electric vehicles."
On the same day, the EU China Chamber of Commerce expressed strong dissatisfaction with the EU's promotion of trade protectionist measures. The China Council for the Promotion of International Trade said that it resolutely opposes the European side ignoring the good trend of the vigorous development of cooperation between China and the EU electric vehicle industry, resolutely opposes the European side ignoring the relevant facts and investigation rules, refusing to correct the wrong identification, and resolutely opposes the European side to impose countervailing duties on Chinese electric vehicles.
On October 4, Geely Holding Group issued a statement saying: "Geely Holding Group is very disappointed with the decision of the European Commission. The decision to impose countervailing duties is not constructive and will hinder the EU's economic and trade relations with China, ultimately harming the interests of European businesses and consumers."
The European Union is debating whether to impose tariffs on Chinese electric cars. According to CCTV news, on October 4 local time, Hungarian Prime Minister Viktor Orban said in an interview with local media that he opposes the EU's imposition of punitive tariffs on Chinese electric vehicles.
German Federal Finance Minister Lindner also said that the European Commission was wrong to "risk in this way" proposing temporary countervailing duties, and that the trade war with China would do more harm than good to the European auto industry.
A number of people interviewed in the industry said in an interview with the Daily Economic News that the EU's move is not conducive to the transformation and development of the global automotive industry. After the landing of the EU anti-subsidy tariffs on October 4, Germany's major car manufacturers also expressed their opposition.
On October 5, Mercedes-Benz expressed its position on the EU's final vote on the anti-subsidy case for electric vehicles, saying, "We firmly believe that anti-subsidy tariffs can undermine the competitiveness of an industry in the long run." Free trade and fair competition will bring prosperity, growth and innovation to all. We therefore believe that the proposed imposition of countervailing duties by the European Commission is a mistake, which could lead to far-reaching negative results."
"The European Union's vote on October 4 to impose tariffs of up to 45 percent on Chinese electric vehicles is a 'fatal signal for the European auto industry' and calls for a negotiated solution as soon as possible," said BMW Group Chairman Martin Ziptzer.
"The EU tariffs on imported electric vehicles from China are unlikely to have a material impact on the competitive landscape in Europe in the near term, with the potential broader measures having an adverse impact on German carmakers' margins and cash flows," Fitch Ratings analysts told reporters.
China-eu negotiations will continue
Since the European Commission launched an anti-subsidy investigation against Chinese-made pure electric vehicles in October 2023, the dialogue between the two sides has never stopped.
The Ministry of Commerce spokesman said that since the end of June, China and the EU have held more than 10 directorate-level technical consultations and two vice-ministerial consultations on the anti-subsidy case of electric vehicles. The China-Eu technical team conducted six rounds of technical consultations in just 14 days, during which the Chinese side repeatedly and fully listened to the demands and opinions of the Chinese and European industries, and demonstrated an open and cooperative attitude and maximum flexibility throughout the consultation process.
For now, the EU has expressed a willingness to continue to negotiate a solution. In a statement issued on October 4, the EU said it would continue to work with China to explore an alternative solution, which must be fully compliant with WTO rules, adequately address the injurious subsidies identified by the Commission's investigation, and be monitored and enforceable.
"The EU-China technical teams will continue negotiations on October 7." The Ministry of Commerce spokesman said.
The European Union's China Chamber of Commerce also said: "The Chinese and European negotiating teams are still working intensively to find a possible solution."
Recently, a number of European car companies have also collectively expressed their willingness to strengthen cooperation with China on new energy vehicles. For example, Aubomu, chairman of the management board of Volkswagen Group, made it clear that the goal is to become the number one international car company in the Chinese market by 2030.
BMW Group director Gao Le also said that China's new energy vehicle industry is currently facing challenges from global trade, BMW supports free trade, and is willing to use its influence to keep free trade open.
"It is now more important than ever that the EU and China maintain dialogue and reach a negotiated solution that serves the interests of both sides." We are confident that the two sides can find such a solution." Mercedes-benz also believes that the two sides need time to form such a solution and therefore calls on the European Commission to postpone the implementation of the measures it has decided on.
After the EU's above countervailing duty proposal was passed, many parties have spoken out on this. So far, China's Ministry of Commerce, the European Union China Chamber of Commerce, the China Council for the Promotion of International Trade and other parties have expressed "firm opposition." In terms of car companies, Geely Automobile, Mercedes-Benz, BMW Group, etc., also made their position clear, expressing "opposition", "disappointment", "strong dissatisfaction" and "wrong" to the European Commission's move.
"Resolutely oppose the EU's imposition of additional countervailing duties on Chinese electric vehicles"
According to Xinhuanet, on October 4, the spokesperson of China's Ministry of Commerce answered the reporter's question when the EU voted to pass the final draft of the anti-subsidy case of electric vehicles: "China's position on the EU's anti-subsidy case against China's electric vehicles is consistent and clear. China firmly opposes the EU's unfair, non-compliant and unreasonable protectionist practices in this case, and resolutely opposes the EU's additional anti-subsidy duties on Chinese electric vehicles."
On the same day, the EU China Chamber of Commerce expressed strong dissatisfaction with the EU's promotion of trade protectionist measures. The China Council for the Promotion of International Trade said that it resolutely opposes the European side ignoring the good trend of the vigorous development of cooperation between China and the EU electric vehicle industry, resolutely opposes the European side ignoring the relevant facts and investigation rules, refusing to correct the wrong identification, and resolutely opposes the European side to impose countervailing duties on Chinese electric vehicles.
On October 4, Geely Holding Group issued a statement saying: "Geely Holding Group is very disappointed with the decision of the European Commission. The decision to impose countervailing duties is not constructive and will hinder the EU's economic and trade relations with China, ultimately harming the interests of European businesses and consumers."
The European Union is debating whether to impose tariffs on Chinese electric cars. According to CCTV news, on October 4 local time, Hungarian Prime Minister Viktor Orban said in an interview with local media that he opposes the EU's imposition of punitive tariffs on Chinese electric vehicles.
German Federal Finance Minister Lindner also said that the European Commission was wrong to "risk in this way" proposing temporary countervailing duties, and that the trade war with China would do more harm than good to the European auto industry.
A number of people interviewed in the industry said in an interview with the Daily Economic News that the EU's move is not conducive to the transformation and development of the global automotive industry. After the landing of the EU anti-subsidy tariffs on October 4, Germany's major car manufacturers also expressed their opposition.
On October 5, Mercedes-Benz expressed its position on the EU's final vote on the anti-subsidy case for electric vehicles, saying, "We firmly believe that anti-subsidy tariffs can undermine the competitiveness of an industry in the long run." Free trade and fair competition will bring prosperity, growth and innovation to all. We therefore believe that the proposed imposition of countervailing duties by the European Commission is a mistake, which could lead to far-reaching negative results."
"The European Union's vote on October 4 to impose tariffs of up to 45 percent on Chinese electric vehicles is a 'fatal signal for the European auto industry' and calls for a negotiated solution as soon as possible," said BMW Group Chairman Martin Ziptzer.
"The EU tariffs on imported electric vehicles from China are unlikely to have a material impact on the competitive landscape in Europe in the near term, with the potential broader measures having an adverse impact on German carmakers' margins and cash flows," Fitch Ratings analysts told reporters.
China-eu negotiations will continue
Since the European Commission launched an anti-subsidy investigation against Chinese-made pure electric vehicles in October 2023, the dialogue between the two sides has never stopped.
The Ministry of Commerce spokesman said that since the end of June, China and the EU have held more than 10 directorate-level technical consultations and two vice-ministerial consultations on the anti-subsidy case of electric vehicles. The China-Eu technical team conducted six rounds of technical consultations in just 14 days, during which the Chinese side repeatedly and fully listened to the demands and opinions of the Chinese and European industries, and demonstrated an open and cooperative attitude and maximum flexibility throughout the consultation process.
For now, the EU has expressed a willingness to continue to negotiate a solution. In a statement issued on October 4, the EU said it would continue to work with China to explore an alternative solution, which must be fully compliant with WTO rules, adequately address the injurious subsidies identified by the Commission's investigation, and be monitored and enforceable.
"The EU-China technical teams will continue negotiations on October 7." The Ministry of Commerce spokesman said.
The European Union's China Chamber of Commerce also said: "The Chinese and European negotiating teams are still working intensively to find a possible solution."
Recently, a number of European car companies have also collectively expressed their willingness to strengthen cooperation with China on new energy vehicles. For example, Aubomu, chairman of the management board of Volkswagen Group, made it clear that the goal is to become the number one international car company in the Chinese market by 2030.
BMW Group director Gao Le also said that China's new energy vehicle industry is currently facing challenges from global trade, BMW supports free trade, and is willing to use its influence to keep free trade open.
"It is now more important than ever that the EU and China maintain dialogue and reach a negotiated solution that serves the interests of both sides." We are confident that the two sides can find such a solution." Mercedes-benz also believes that the two sides need time to form such a solution and therefore calls on the European Commission to postpone the implementation of the measures it has decided on.
