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the eu votes to pass the final draft of the anti-subsidy case for electric vehicles, negotiations will continue, and car companies respond

2024-10-05

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on october 4, local time, the european union held a vote on whether to impose a five-year countervailing duty on chinese electric vehicles. a statement released by the european commission shows that the european commission's proposal to impose tariffs on imported pure electric vehicles from china received the necessary support from eu member states during the vote.

the statement said that the eu and china continue to work hard to explore alternative solutions that are fully consistent with wto regulations, can adequately address the harmful subsidies identified by the commission’s investigation, and are monitorable and enforceable.

in response, a spokesman for the chinese ministry of commerce responded to the eu's vote to pass the final draft ruling on the electric vehicle countervailing case, saying that china firmly opposes the eu's final draft ruling, but also noted the eu's expression of political will to continue to resolve the issue through negotiations. the china-eu technical team will continue negotiations on october 7.

since the end of june this year, china and the eu have conducted more than ten department-level technical consultations and two deputy ministerial-level consultations on the electric vehicle countervailing case.

judging from the information conveyed at the recent "berlin global dialogue" summit in germany, in addition to tariff decisions, the eu and china are continuing to negotiate on alternative options such as electric vehicle prices and quotas, as well as investment.

the european commission has previously stated that it is willing to continue negotiations with china on tariff alternatives and may review price commitments, including minimum import prices and production caps.

denis depoux, co-president of roland berger’s global management committee, told china business news: “the eu is continuing negotiations with china to reach a better solution, including pricing planning, quotas and investment for electric vehicles. etc.”

dai pu recently participated in the "berlin global dialogue" summit held in germany. at the meeting, mercedes-benz group ceo ola kaellenius debated issues related to eu tariffs with german economy minister robert habeck and he xiaopeng, ceo of chinese electric car maker xpeng motors.

in september, a spokesman for the ministry of commerce said that since china and the eu agreed to launch consultations on the eu electric vehicle countervailing case on june 22, the working teams of both sides have intensively conducted more than ten rounds of consultations, and china has submitted tens of thousands of pages of facts and facts to the eu. evidence, flexible solutions have also been proposed, and great efforts have been made. the key to the current consultations is whether the european side really has the political will to solve the problem.

after the european union voted to pass the final draft ruling on the anti-subsidy case for electric vehicles, many european car companies expressed opposition.

bmw ceo oliver zipse called the vote "a fatal signal for the european automotive industry." he said that china and europe need to reach a compromise quickly to prevent trade conflicts. volkswagen has said the eu tax is the "wrong approach".

german automakers, whose sales to china account for nearly a third of their total sales, have been particularly opposed to the tariffs.

the german union ig metall and employee representatives of major automakers said in a statement on october 3: "germany should vote against the eu's tariffs on chinese electric vehicles. the tariffs are the wrong approach because it will not improve the performance of the european auto industry. competitiveness.”

french automotive group stellantis also said it supports free and fair competition.

geely holdings expressed "disappointment" with the european commission's decision, saying it may hinder the eu's economic relations with china and harm the interests of european businesses and consumers.

the eu's latest tax rules on chinese-made electric vehicles are levied on top of the previous standard car import tax of 10%. the tariffs range from 7.8% (tesla) to 35.3% (saic group), with the maximum tax amount up to 45%.

the european commission said the tariffs were imposed to combat cheap loans, land and raw materials and other subsidies, with the goal of creating a level playing field rather than shutting out chinese automakers like the 100% tariffs planned by the united states.

spanish economy minister carlos cuerpo also expressed opposition to the imposition of tariffs in a letter to the european commission. he believes that the eu should "keep negotiations open before the vote results take effect" in order to reach an agreement on issues such as prices and the transfer of battery production within the eu.