On Tuesday, October 29, the European Commission adopted the regulation that establishes additional customs duties on electric cars imported from China, accused of creating unfair competition.
Despite Germany’s hostility, Brussels has decided to add to the 10% tax already in force a surcharge of up to 35% on battery-powered vehicles manufactured in China, according to the text of the regulation published online by the Commission. The decision will be published on Wednesday at Official Gazette of the european union and will go into effect on Thursday.
The stated goal is to restore a level playing field with manufacturers accused of benefiting from massive public subsidies. It is about defending the European car industry and its approximately 14 million jobs against practices considered unfair identified during a long investigation by the Commission.
Consultations will continue
Beijing had denounced “unfair and unreasonable protectionist practices” following the agreement given at the beginning of October by the Member States of the European Union (EU) to the surcharges proposed by the Commission.
Until the last moment, the European Trade Commissioner, Valdis Dombrovskis, continued the dialogue with the Chinese Trade Minister, Wang Wentao, to try to find a negotiated solution. In vain.
Despite everything, both parties agreed to continue consultations. At any time, the surcharges could be removed if an agreement is reached on other means to compensate for the damages identified by the European investigation.
China threatens to hit European interests. It has already responded by launching antidumping investigations targeting pork, dairy products and wine-based spirits, including cognac, imported from Europe.
Enough to make certain EU members hesitate. Germany and four other countries (Hungary, Slovakia, Slovenia and Malta) voted against the Commission’s tax plan, but failed to muster the majority needed to reject it.
