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China auto association slams unfair EU tariffs on EVs

Xinhua | Updated: 2024-08-21 15:36
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A SAIC model is driven into a cargo ship headed to Europe. [Photo provided to chinadaily.com.cn]

BEIJING - The China Association of Automobile Manufacturers (CAAM) on Wednesday expressed strong dissatisfaction and firm opposition to the European Commission's plan to slap hefty import duties on Chinese electric vehicles (EVs).

Last month, the commission imposed provisional additional tariffs of up to 37.6 percent on Chinese EV makers, after it launched an anti-subsidy probe on Chinese EVs in October 2023.

On Tuesday, the commission published a draft plan to make those tariffs definitive, at slightly revised rates, subject to approval by European Union (EU) member states.

According to the disclosed information, the anti-subsidy tax rates for the three sampled Chinese EV companies, BYD, Geely, and SAIC, are 17.0 percent, 19.3 percent, and 36.3 percent, respectively.

CAAM's statement highlighted the significant risks and uncertainties these high anti-subsidy tariffs pose for Chinese companies operating and investing in Europe, which could erode their confidence.

The association warned that such measures could also severely impact the EU's automotive industry, employment, and efforts toward green and sustainable development.

CAAM urged the European side to uphold dialogue and cooperation to foster a "fair, non-discriminatory and predictable market environment" conducive to the automotive industry's development.

As a self-regulatory, non-profit social organization, CAAM represents enterprises, institutions, and groups involved in the production and operation of complete vehicles, auto parts, and related industries in China.

Many Chinese auto companies had started or planned to invest or operate in Europe before the EU launched its anti-subsidy probe into Chinese EVs. But since the EU's decision to impose provisional countervailing duties, many Chinese EV enterprises have expressed concerns over the probe and the possible risks of investing in Europe.

A spokesperson with the Ministry of Commerce said Tuesday that the country will take all necessary measures to defend the legitimate rights and interests of Chinese enterprises in response to the EU's actions.

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