- The institution surprised many last week by announcing an anti-subsidy investigation focused on the electric vehicle market in the world’s second-largest economy.
- A spokesman for China’s Ministry of Commerce said following the announcement: “China expresses great concern and great dissatisfaction about this,” according to translated remarks.
- The EU is increasingly focused on the state of the electric vehicle market ahead of a 2035 deadline to ban diesel vehicle sales.
The European Union is “very far away” from imposing new tariffs on Chinese electric cars, a senior official told CNBC, just days after the bloc launched an investigation into subsidies provided by Beijing.
“We are far from imposing import duties on Chinese vehicles because I think these investigations, to be fair, must be carried out properly,” Maroš Šefčovič, vice president of the European Commission, the EU’s executive body, told CNBC on Tuesday .
The institution surprised many last week by announcing an anti-subsidy investigation focused on the electric vehicle market in the world’s second-largest economy. The European Commission expects cheaper Chinese electric cars to flood the European market and prices to remain low due to extensive government subsidies.
A spokesman for China’s Ministry of Commerce said following the announcement: “China expresses great concern and great dissatisfaction about this,” according to translated remarks.
The same spokesman added: “China will pay close attention to the EU’s protectionist tendencies and follow-up actions, and resolutely protect the legitimate rights and interests of Chinese companies.”
The commission said an anti-subsidy investigation could take up to 13 months from the start. It also said that interim measures must be introduced no later than nine months, followed by four months for the introduction of definitive measures if legally justified.
Aerial view of vehicles being shipped to Europe parked at Taicang Port in Suzhou, Jiangsu Province, China, December 19, 2022.
Vcg | Visual China Group | Getty Images
“But it is now clear that we must redouble our efforts to ensure our automotive industry remains competitive. We have always been very proud that the best, safest and cleanest cars are made in Europe,” said Šefčovič.
The proportion of Chinese-made electric cars sold in Europe rose to 8% this year. European officials have argued that this figure could reach 15% by 2025.
In addition, European officials have found that prices for Chinese-made electric vehicles are about 20% lower than those made in the EU.
The EU is increasingly focused on the state of the electric vehicle market ahead of a 2035 deadline to ban sales of new diesel vehicles.
“We work a lot with the battery industry and car manufacturers, and I am now organizing various groups of industry roundtables [where] “I would like to discuss even more closely with the European automotive industry what it needs and where we can help so that we can really bring more electric vehicles to market and be strong not only in European but also in global markets,” said Šefčovič.
The EU already imposes a 10% tariff on all imported cars. However, the United States has a higher tariff of 27.5%.