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red star capital bureau reported on october 5 that many car companies have expressed opposition to the eu's imposition of tariffs on chinese electric vehicles.

according to the financial associated press, today, mercedes-benz issued a statement saying: we firmly believe that countervailing tariffs will weaken the competitiveness of an industry in the long term. free trade and fair competition will bring prosperity, growth and innovation to all parties. therefore, we believe that the imposition of countervailing duties proposed by the european commission is a mistake, which could lead to far-reaching negative consequences.

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. 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 shows 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.

on october 4, geely holding group issued a statement saying that it was very disappointed with the european commission’s decision. the decision to impose countervailing duties is not constructive and will hinder the economic and trade relations between the eu and china, ultimately harming the interests of european companies and consumers. geely holding group stated that it will always support free trade, advocate fair competition, strictly abide by laws and regulations around the world, and provide excellent products and services to global users.

screenshot from the official website of geely holding group

many european car companies also expressed opposition to this.

bmw ceo oliver zipzer called the vote "a fatal signal for the european automotive industry." volkswagen said in a statement: "we stand by our position that the proposed tariffs are the wrong approach and will not help improve the competitiveness of the european automotive industry." french automotive group stellantis also said the company supports free and fair compete.

on october 4 last year, the european commission launched a countervailing investigation into electric vehicles imported from china, and on july 4 this year it imposed temporary countervailing duties on chinese electric vehicles.

on august 20, the european union released the final draft of the anti-subsidy investigation into china's electric vehicles, and plans to impose countervailing duties of 17%-36.3% on chinese electric vehicles. the tax rate for byd (002594.sz) is 17.0%; geely 19.3%; saic motor (600104.sh) 36.3%; other cooperative companies 21.3%; all other non-cooperative companies 36.3%; decided to impose tax on tesla (tsla.us) as a chinese exporter, a separate tariff rate is implemented, which is currently set at 9%.

currently, chinese electric vehicles are generally priced higher in europe than in china due to import costs and taxes. if countervailing duties are imposed on top of the existing 10% tariff, chinese electric vehicles will no longer have competitive prices. to this end, byd, geely, saic, chery, changan automobile (000625.sz), xpeng motors (09868.hk/xpev.us), leapmotor (09863.hk) and other car companies have planned to build factories in europe , establishing joint ventures, utilizing the production capacity of existing partners and other localization methods to avoid the impact of countervailing tariffs.