Is Europe immersed in a trade war with China? Many are asking this question when the member states of the European Union (EU) gave their agreement on Friday, October 4, so that the European Commission can implement a surcharge of up to 35.3% on electric vehicles manufactured in China. On June 12, the community executive announced these provisional customs duties; States could still modify this decision. It didn’t happen.
Germany, very hostile to any surcharge on products from China, one of its essential trading partners, tried to rally other states to block the measure, but failed to convince Hungary, Malta, Slovakia and Slovenia, an insufficient coalition. A dozen countries voted in favor of the proposal, including France, Italy and the Netherlands. A dozen more, including Spain and Sweden, preferred to abstain, which is equivalent to supporting the measure.
Starting October 31 at the latest, and for five years, vehicle exporters established in China – whether Chinese, European such as Renault or BMW, or American such as Tesla – will have to pay a countervailing duty up to the amount of the aid. that they receive. received in China, in addition to the customs duties, already in force, of 10%. According to the Commission’s investigation, these manufacturers benefit from average subsidies equivalent to almost 21% of their turnover.
Surcharge rates were adjusted for manufacturers who demonstrated, during the survey, that they received less public support. Thus, Tesla obtained a rate of 7.8%, BYD – 17%, Geely – 18.8%. SAIC, the Shanghai manufacturer that markets the British MG brand in Europe, will have to pay a 35.3% surcharge. Other manufacturers will have to pay a 20.7% surcharge.
“Harmful subsidies”
Brussels, determined to ban the entry into circulation of cars with internal combustion engines by 2035, intends to support the transformation of the European automobile industry, which employs some 13 million people, in the face of increasingly aggressive Chinese competition. Between 2020 and 2024, the market share of much more affordable Chinese-made vehicles rose from 12% to almost 25%. According to the non-governmental organization Transport and Environment, “This market share could decline to 20% in 2025 and 18% the following year if customs duties on Chinese-made electric vehicles and European emissions standards [de polluants] of 2025 were applied ».
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