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European Commission may apply customs duties to Chinese electric vehicles

Virgilio Machado by Virgilio Machado
December 6, 2024
in Latest News
Reading Time: 2 mins read
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The European Commission claims to have evidence that the Chinese government is subsidizing electric vehicles exported to the European market through “direct fund transfers” and other mechanisms.

According to the “Reuters” agency, the Commission has already stated that it will start customs registration of imports of 100% Chinese electric vehicles, which means that these registrations may have to pay retroactive customs duties if the European Union’s trade investigation subsequently concludes that they benefited from Chinese state subsidies.

The China Chamber of Commerce to the EU expressed its disappointment with the European Commission’s position, as reported by “AutoNews Europe“, claiming that the increase in imports reflected the increased European demand for electric vehicles.

The ongoing investigation by the European Commission, which is expected to be completed in November, alleges that EU manufacturers may suffer significant losses if Chinese imports continue to grow rapidly until the investigation is concluded.

According to the European Commission, Chinese government subsidies for exporting electric vehicles to Europe result in an average price difference of 20% between electric cars manufactured in China and their EU counterparts.

China has the advantage of holding a dominant position in the raw materials needed for the manufacture of batteries, such as lithium, cobalt, nickel, and manganese, creating a comprehensive environment in which China controls virtually all aspects of the supply chain. 

The inevitable result was a sharp increase in the production of electric cars manufactured in China and a wave of exports to the whole world.

Tags: AutoNews Europecarros elétricosChinaComissão EuropeiaEuropamobilidade elétricaTarifas aduaneirasveículos elétricos
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