Amid escalating trade tensions between China and the European Union, Chinese electric vehicle manufacturers have proposed a 25% duty on large European vehicles with internal combustion engines. This proposal is a direct response to the recent the EU’s decision to impose tariffs of up to 38.1% on Chinese-made electric vehiclesThe EU will not impose any sanctions if the Chinese government does not stop what the EU considers to be anti-competitive practices.
The Chinese proposal was discussed at a closed-door meeting in Beijing between the Chinese Ministry of Commerce and representatives of major European and Chinese automakers. The duty is specifically targeted at European cars with internal combustion engines of more than 2.5 liters. Imports to China in this segment last year amounted to approximately 250 thousand units.
The EU’s decision to increase tariffs on Chinese electric vehicles was made after an investigation showed that some of these vehicles received unfair subsidies. The state-owned automaker SAIC Motor, known for brands such as MG, is expected to bear the brunt of these duties. Ironically, MG was the best-selling Chinese electric car brand in Germany in May.
In response to these duties, Shao Jingfeng, SAIC Motor’s global design director, created new MG logos that include the 38.1% duty figures. He also launched a line of products featuring this design, including bicycles, baseball caps, socks, coffee mugs, T-shirts, and more. This resonated with Chinese consumers.
The Chinese government has accused the EU of using the investigation as an excuse to gain access to the trade secrets of Chinese electric vehicle manufacturers. While the EU argues that the tariffs are necessary to ensure fair competition, the Chinese government claims that they are protectionist and will harm the global automotive industry. And in response to Europe’s actions, China is now proposing to use tariffs on large European vehicles.
Source: arenaev
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