Automotive News Europe — 2024-08-23
Automotive Industry
China is sounding a warning as the EU is due to vote in October 2024 on whether to adopt additional duties of up to 36.3% on Chinese-made EVs on top of its standard 10% import tariff.
China's Commerce Ministry met with automakers and industry associations to discuss raising import tariffs on large-engine gasoline vehicles, sounding a warning as the European Union nears a tariff decision on Chinese electric cars.
The 27-strong bloc is due to vote in October 2024 on whether to adopt additional duties of up to 36.3% on Chinese-made electric vehicles on top of its standard 10% import tariff.
The EU on 20 August 2024 revised down the proposed duties from the 37.6% rate set in July 2024 but stopped short of abandoning them to Beijing's dismay.
On 21 August 2024, China hit back by announcing it had widened its investigations into imported EU products by adding an anti-subsidy probe of various cheese, milk and cream goods to anti-dumping checks on pork and brandy.
In a statement on 23 August 2024, the Commerce Ministry said officials had "listened to the opinions and suggestions of industry, experts, and scholars on raising the import tariffs on fuel-powered cars with large displacement engines."
Representatives of relevant industry associations, research associations, and automakers joined the meeting, it added.
State-owned tabloid Global Times, which first reported the investigations into European pork and dairy, in June 2024 also raised the prospect of China raising its import tariff on large-engine gasoline cars.
Doing so would hit Germany hardest. Its exports of vehicles with engines of 2.5 liter’s or larger to China were worth $1.2 bn in 2023, Chinese customs data shows. China is the biggest market for German brands including Mercedes-Benz, BMW, Audi and Porsche.
China has been canvassing member-states to counter the EV tariffs, as the European Commission, which oversees the bloc's trade policy, cannot implement the duties if a qualified majority of 15 EU members representing 65% of the EU population vote against them.
Germany, along with Finland and Sweden, abstained from a July 2024 advisory vote on whether to back the tariffs' permanent adoption, sources have said.
France, Italy and Spain backed the proposed tariffs, and are among those that would be most affected by any punitive duties resulting from China's growing number of trade investigations.