The European Union is continuing the high import duties on Chinese electric cars. They start today, the European Commission stated.
The levies should end the unfair competition that China would face by subsidizing its own manufacturers. The penalty charge for BYD cars is 17.4 percent. For cars of the Geely group (e.g. Volvo), and additional 19.9 percent has to be paid, and on those of SAIC (MG) even 37.6 percent. For other manufacturers, the EU charges 20.8 percent, but that can be 37.6 percent in the event of lack of cooperation. Rates are slightly lower than announced. The import tax on Chinese electric cars has so far been 10 percent.
The charges are still provisional. The funds will be set aside, in case Brussels and Beijing do not get to an agreement in the next four months. If the committee decides that China is not improving its behavior, the measures will take effect for five years. This can only be stopped if a a large majority of EU countries votes against it, which seems unlikely for the time being.
The commission, which deals with EU trade, had launched an investigation into electric cars by Chinese companies last October. They benefit from unfair government subsidies, was their conclusion. According to the EU's daily administration, the Chinese manufacturers can easily apply a 20 percent lower price and European competitors cannot compete with that.
Europe was flooded with cheap electric cars from China last year. Due to that fierce price war, many European car manufacturers are losing market share, while their own electric vehicle industry is crucial to make the EU climate neutral, according to the European Commission.
In the past China heavily competed with European solar panel manufacturers, for example.