Brussels announced on July 4 that companies that manufacture electric vehicles (EVs) in China will be subjected to additional tariffs when their products are exported into the European Union market.
Tariffs of up to 37.6 percent on China-manufactured EVs will be imposed by all member states starting July 5. The decision is binding and will initially apply for four months, after which it may be extended for years.
Brussels reiterated that message on July 4 in its statement, saying that its technical talks with Beijing would continue with “a view to reaching a WTO-compatible solution,” which should “adequately” address its concerns.
The provisional duties on Chinese EVs are almost identical to the plans released last month. The commission said it slightly decreased some rates based on “comments on the accuracy of the calculations submitted by interested parties.”
The measures will also affect Western companies that manufacture EVs in China, such as Tesla, which has a gigafactory in Shanghai. The U.S. giant carmaker, along with BMW and other carmakers deemed by the EU as cooperating in its probe, will be subjected to a 21 percent duty, while automakers that did not cooperate will be subject to a higher duty of 38.1 percent, according to the Official Journal.
The EU’s ongoing investigation on Chinese-made EVs is expected to continue for almost four additional months.
‘Deglobalizing’
The Chinese regime has pledged to take “all necessary measures” to “firmly” defend its rights and interests.![Electric cars for export are waiting to be loaded on the "BYD Explorer NO.1," a domestically manufactured vessel intended to export Chinese automobiles, at Yantai port, in eastern China's Shandong Province, on Jan. 10, 2024. (STR/AFP via Getty Images)](/_next/image?url=https%3A%2F%2Fimg.theepochtimes.com%2Fassets%2Fuploads%2F2024%2F05%2F22%2Fid5655379-GettyImages-1915751404-LSedit-1200x800.jpg&w=1200&q=75)
Some analysts say Beijing’s retaliatory moves are intended to pressure Brussels into softening its stance.
“China is using whatever levers it has to push the EU into moderating its stance. That is all part of the strategic competition,” said Erik Jones, director of the Robert Schuman Centre for Advanced Studies at the European University Institute based in Italy.
“The news about Chinese dumping investigations into EU pork exports is just the latest illustration,” he recently told The Epoch Times.
Mr. Jones said that Beijing’s retaliation could only intensify tensions with the EU, and Brussels will continue its course of “derisking.”
“Every tit-for-tat episode gets added to the overall tension in the relationship,” Mr. Jones continued, adding, “I expect this kind of dynamic to increase and not decrease over the coming months and years.”
No matter who controls the White House, Mr. Jones said the underlying structure of the EU–China relationship will “remain on the same trajectory we see today—toward more strategic competition and so also toward more ‘derisking.'”
“The world is ‘deglobalizing,’ even if that trend is still not showing up in the trade and investment data,” he concluded.