EU to slap extra tariffs on Chinese electric cars in a bid to close competition gap

The European Commission's anti-subsidy inquiry into Chinese electric vehicles has been described as one of the most consequential of its kind.

Transcript

00:00 The European Commission has said Chinese companies producing electric cars present on the EU

00:07 market will have to pay extra duties and tariffs on their products from July.

00:12 The decision brushes aside some EU government's warnings that the move risks starting a costly

00:18 trade war with Beijing.

00:20 There is no uniform tariff.

00:22 Instead, individual temporary countervailing duties have been established, varying from

00:27 company to company, between 17.4 and 38.1 per cent.

00:33 This value chain benefits from unfair subsidiarisation, which is causing a threat of economic injury

00:44 to EU battery electric vehicles producers.

00:49 Around 10 billion euros worth of Chinese electric cars were exported to the EU last year, according

00:55 to data from the Rhodium Group, increasing its market share to 8 per cent.

01:00 If nothing changes, the ratio may grow to over 20 per cent by 2027.

01:06 While the new EU customs duty could bring in 2 billion euros of income for the bloc

01:11 every year, large European companies that manufacture their cars in China may be affected.

01:18 German Carmakers Association, acknowledging the results of the investigation carried out

01:23 by the European Commission, have rejected the tariffs and called for a more conciliatory

01:28 approach.

01:29 "The focus must be on partnership.

01:30 That is why it is important that the EU Commission extends its hand to the Chinese government

01:34 and that the Chinese government also sees this offer and says, 'Yes, we will talk to

01:41 the EU and we will try to find a solution to ward off these tariffs.'"

01:48 Among the member states, Germany, Sweden and Hungary lobbied against the proposal.

01:54 German and Swedish cars are produced in China and it is not in Hungary's interest to impose

02:00 trade-related restrictions with China.

02:03 The Chinese Commerce Ministry says it was highly concerned and strongly dissatisfied

02:08 with what it called the "ill-informed and lawless EU action".

02:13 It has warned it would take all necessary measures to protect Chinese companies' rights.

02:18 The new tariffs will be introduced on 5 July, according to the European Commission.

02:23 [WHOOSH]