Hard times are approaching for Chinese cars in the soil of the Old Continent, in fact the EU has launched the adoption of import duties more rigid and aimed at cars produced in the country of the Dragon. It doesn’t matter whether they are electric or not, all of them will have to pay for a variable increase in duties from 17 to 38%, which adds to the 10% already in force. This measure, still provisional, could come into force starting from July 4th, with the peculiarity that it will be “ad personam”. Each manufacturer will have its own reserved treatment.
A custom size
The European decision on the increase in duties has arrived after months of investigations. The checks were carried out by the Commission services to confirm the existence of public subsidies aimed at Chinese electric car manufacturers which would distort competition. The result, according to the EU report, is that Chinese cars benefit from unfair subsidies and cause a threat of economic harm to EU manufacturers.
Countervailing duties will be temporarily imposed on imports. The duties to the three sampled Chinese producers will be: Byd of 17.4%; Geely 20%; Saic 38.1%. Other producers who cooperated in the investigation will be subject to a 21% duty, while it will be 38.1% for those who did not cooperate.
The process of additional EU duties
By July 4th, the Commission will publish a regulation in the Official Journal showing in detail what was assessed to decide the amount of duties. The day after publication i duties will be lawfully in force. Any company producing in China not selected in the final sample and which wishes to have its particular situation investigated, they say from Brussels, can request an accelerated review, in line with the Basic Anti-Subsidy Regulation, immediately after the imposition of the definitive measures. The deadline for completing this review is 9 months.
The reaction of China and beyond
From China they have made it known that they do not agree with this initiative undertaken by Europe, since it violates the principles of the market economy and the rules of international trade. For the Ministry of Commerce, the EU’s conclusions have no factual and legal basis and ignore the objective fact that China’s advantages in electric vehicles derive from open competition. There China urges EU to immediately correct its wrong practicesreserving the right to resolutely adopt all necessary measures to protect Chinese companies.
“Protectionism cannot be the answer to restoring European competitiveness. Consolidated efforts are needed to make the EU attractive for investment again“, declared Benjamin Krieger, general secretary of Clepa. Ola Källenius, CEO of Mercedes-Benz, also underlined the desire for a “Free and fair global trade: As an exporting nation, what we need is not more barriers. We must work to dismantle barriers to trade in the spirit of the WTO“. Stellantis and Volkswagen also reveal their concerns about this solution.
How the price of some Chinese cars marketed in Italy would change
BYD
- Act 3 – current price of 38,790 euros, with 17% duty it becomes 45,384 euros
- Dolphin – current price of 33,790 euros, with 17% duty it becomes 39,534 euros
- Han – current price of 70,940 euros, with 17% duty it becomes 82,999 euros
- Seal – current price of 43,600 euros, with 17% duty it becomes 51,012 euros
- Seal U – current price of 42,890 euros, with 17% duty it becomes 50,181 euros
Aiways
- U5 – current price of 43,500 euros, with 21% duty it becomes 52,635 euros
- U6 – current price of 49,900 euros, with 21% duty it becomes 60,379 euros
Link & Co (Geely)
- 01 – current price of 44,500 euros, with 20% duty it becomes 53,400 euros
MG (SAIC)
- ZS – current price of 17,450 euros, with 38% duty it becomes 24,081 euros
- HS – current price of 25,490 euros, with 38% duty it becomes 35,176 euros
- MG4 – current price of 30,790 euros, with 38% duty it becomes 42,490 euros
- MG5 – current price of 34,490 euros, with 38% duty it becomes 47,596 euros
- MG3 – current price of 19,900 euros, with 38% duty it becomes 27,462 euros
Xpeng
- P7 – current price of 49,900 euros, with 21% duty it becomes 60,379 euros
- G9 – current price of 57,600 euros, with 21% duty it becomes 69,696 euros
- G6 – current price of 43,200 euros, with 21% duty it becomes 52,272 euros
