Customs duties on Chinese electric vehicles arouse a fierce controversy

Chinese businesses have been in Europe with a number of low -price -electric vehicles for several years. This export campaign is led by the Towning business, which was one of the most prominent sponsors of the European Football Cup, and with it MG, the car manufacturer who specializes in the mid -century with Rhodester vehicles, the structure and today cars have a back door that opens to the highest and multi -purpose sports vehicles from China. This effort started with a few cars in 2019, but it increased to 175 thousand cars last year, according to researchers of “Dataforce”, and it is an important shift that follows him with the concerns of the boards of the “Volkswagen” businesses and “Stellantis”, the owner of the signs of “Jeep”, “Fiat”, “Peugeot”, and other European car businesses. Increased customs definitions, Chinese enterprises contributed about 9% of total sales of electric vehicles in the old continent during 2023. Although electrical vehicles sales are still small of the car market in Europe, their number has recorded an accelerated increase, as the European Union relies on this technology to improve innovation, especially with the approximate date of abandoned internal combustion power, which has the same time. Try to protect a sector that offers millions of high wage jobs during this transition period. An investigation by the European Union in March concluded that Chinese government support businesses help sell electric vehicles at low prices, and this has negatively affected the competition. To meet this challenge, the European Union has approved a temporary increase in customs tariffs of up to 48%. These controls came into effect on July 5, but the executed car businesses do not have to pay the fees until these rules become permanent, and the case was held in November. However, Europe is not at the heart of one man about this decision, which raises questions about the correctness of imposing these fees, which can ignite a trade war with Beijing, in collaboration with the slowdown in the growth of electric car sales worldwide, which has increased pressure on manufacturers everywhere. Collision of interests that do not support all European car businesses increased tariff because they are afraid of a Chinese revenge reaction in an important market, and also because the electric cars made by these businesses in China will also be affected by the tariff. “These fees will lead us to a dead end and will not help make European manufacturers more competitive,” BMW CEO Oliver Zipus said on August 5. The new data associated with car registration will not help solve the controversy. In June, Chinese car businesses were quick to deliver electric vehicles to agents to be registered before entering the new customs duties, which led to the depletion of the shares of the businesses and the number of cars available in July. As a result, the registration of Chinese electric cars fell by 45% compared to June, according to the data of “Datafors”, covering 16 markets in the European Union. The market for electric vehicles in general, which means that cars produced by all manufacturers have dropped by 36% in all these countries. Matthias Schmidt, an independent car analyst in Germany, said European companies are more careful to manage their share. He added: “We saw a strong impulse of Chinese businesses” to deliver cars to the galleries in June, “which probably led to the depletion of stock.” Continuous negotiation in the United States, customs tariffs can double the prices of electric cars manufactured in China, which means the market for these vehicles is closed. To avoid these drawings, ate a new factory in Mexico, a manufacturing strategy that can also be applied in the European Union. The company plans to establish factories in Hungary and Turkey, while ‘Chery Automobile’ operates a factory in Spain. Meanwhile, other Chinese businesses are on their way to the establishment of alliances with European car businesses. For example, Leap Motor has entered into a partnership with ‘Stelins’ to create a factory in Poland. Brussels is involved in talks with Beijing in search of less provocative solutions to address its fear, at a time when China increased the tension by responding to European customs tariffs by opening an investigation aimed at pork exporting from the European Union. In the case of failure to reach an agreement, temporary customs duties on Chinese electric cars will become permanent after the voice of member states, which are expected at the end of October. “The Europeans are ready to negotiate, but it is clear that this solution should address this imbalance in the market,” said Valdes Dombrovskis, the executive vice president of the European Commission, in an interview with Bloomberg TV.