The EU Trade Policy Watchdog’s decision to impose additional tariffs on Chinese electric vehicles stems from their belief that unfair subsidies are at play, including preferential financing, land grants, and raw materials provided at below-market rates. This move aims to counter the perceived advantages enjoyed by Chinese manufacturers.

According to the report, China’s excess production capacity stands at 3 million electric vehicles annually, double the size of the EU market. With the US and Canada already imposing 100% tariffs, the target market for these vehicles becomes the European market.

Illustration: KT

European automakers are grappling with the influx of affordable electric vehicles from Chinese competitors. The EU Trade Policy Watchdog estimates that the market share of Chinese brands in the bloc increased from under 1% to 8% in 2019 and could reach 15% by 2025. Prices of Chinese electric vehicles are typically 20% lower than their EU-produced counterparts.

China has strongly reacted to the EU’s decision, with the Ministry of Commerce expressing their disagreement and hoping for a mutually acceptable solution to avoid trade tensions. The Chinese Chamber of Commerce in the EU also voiced disappointment over the bloc’s “protectionist” and “arbitrary” measures, concerned about the lack of significant progress in negotiations to find alternatives to tariffs.

In retaliation, China has initiated investigations into the import of spirits, dairy, and pork products from the EU this year. They have also filed a complaint against the EU’s provisional tariff increases at the World Trade Organization.

You may also like

The Rise of a Chinese Coffee Powerhouse: A Super-Affordable Brand with Over 20,000 Stores in its Domestic Market, Set to Challenge the US and Southeast Asian Beverage Industries.

China’s largest coffee chain is planning a comeback in the US market, setting its sights on challenging competitors, including Starbucks.

The Prime Minister Invites the UAE’s Top Four Conglomerates to Invest in Strategic Sectors

On the afternoon of October 27, during his official visit to the United Arab Emirates (UAE), Prime Minister Pham Minh Chinh met with leaders of prominent UAE-based corporations, including Abu Dhabi Ports Group, NDMC Group, and Emirates Motor Company.

Exploring the Ban Gioc – Detian Falls Today: A Guide to Experiencing This Majestic Landscape

As of today, October 15th, the symbol of cooperation between Vietnam and China is officially in motion.

Unprecedented: Vietnam and China Officially Launch Tourism at the World’s Most Spectacular Waterfall Landscape.

After a year-long pilot operation, the Ban Gioc Waterfall (Vietnam) – De Tian (China) Scenic Landscape Area is now officially open.

The Dragon’s Stumble: Impact on Vietnam’s Stock Market

Vietnam and China share a deep economic interdependence, with many sectors potentially impacted by any changes in their relationship. These include aviation, tourism and service industries, agricultural exports, and building materials, to name a few.